- The Bitcoin price is up by over 2%, as BTC started the week relatively positively.
- BTC had been quite bearish over the previous week and had dropped to $38,382 on Sunday.
The Bitcoin price has made a fairly strong recovery during the ongoing session, as buyers look to push BTC towards $39,500 and higher. BTC had registered a drop of 1.30% on Friday before making a marginal recovery on Saturday and moving to $40,123. However, BTC fell back by over 4% on Sunday to $38,382 before recovering during the ongoing session.
Bitcoin Price Chart Indicates BTC Could Push Towards $39,500
The Bitcoin price was quite bearish over the previous weekend, as BTC fell by 2.55% on Friday. The weekend saw BTC register a fall of 0.36% on Saturday and Sunday to settle at $42,106 before recovering on Monday and rising to $42,561. BTC continued to push higher from this level, as it rose by almost 5% on Tuesday, rising to $44,536 before turning bearish and falling by 1.46% to $43,885 on Wednesday.
Image: BTC/USD daily
The Bitcoin price remained in the red on Thursday, as BTC fell by nearly 8%, dropping below the 20 and 50-day SMAs and settling at $40,549. Friday saw BTC register a drop of 1.30%, falling to $40,023, before making a marginal recovery on Saturday, rising to $40,123. However, BTC fell back on Sunday, dropping by over 4% to $38,382 before recovering during the ongoing session.
We can see that the MACD is currently bearish, indicating that the price could drop from its current level.
IntoTheBlock’s IOMAP for the Bitcoin price shows us that BTC has strong support at $39,853. At this price level, over 791,000 addresses have sold more than 704,000 BTC.
Image: IntoTheBlock
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The 4-hour Bitcoin price chart shows us that BTC had pushed up to $44,536 on the 16th. BTC was able to stay at this level for the next few sessions thanks to the 50-bar SMA acting as support. BTC fell back below the 20 and 50-bar SMAs on the 17th when BTC dropped to $43,205. BTC continued to drop from this level, falling to $40,549, where the 200-bar SMA acted as support. BTC fell below the level, dropping below the 200-bar SMA to $39,878 on the 18th. With the 200-bar SMA now acting as resistance, BTC could not move past this level and dropped to $38,313 on the 20th before recovering and rising to its current level of $39,149.
We can see that the Parabolic SAR is bearish, indicating that the price could drop. However, the MACD has flipped to bullish.
Image: BTC/USD 4-hour
Bitcoin Wallet Rejects Canada’s Court Demand to Freeze Funds Citing Technically Impossible
Canadian truckers protesting against Covid-19 restrictions in Ottawa over the last days has resulted in multiple demonstrators having their bank accounts frozen, and Canada’s Prime Minister Justin Trudeau invoking the Emergencies Act to include crypto transactions.
As the Canadian government tries to derail the flow of funds to the demonstrators, the Ontario Superior Court of Justice sent Nunchuk a self-custodial Bitcoin wallet to Mareva Injunction, ordering it to freeze and disclose information about the assets involved in the Freedom Convoy 2022 campaign.
In an official response to the Ontario Superior Court of Justice, Nunchuk replied that it is a “self-custodial, collaborative multi-sig Bitcoin wallet” and that it is a “software provider, not a custodial financial intermediary.”
Nunchuk’s team added:
“We do not collect any user identification information beyond email addresses. We also do not hold any keys. Therefore, we cannot ‘freeze’ our users’ assets. We cannot ‘prevent’ them from being moved. We do not have knowledge of ‘the existence, nature, value, and location’ of our users’ assets. This is by design.”
In general, the official response from the start-up after being ordered to freeze and disclose information on assets implicated in the protests highlights the problems of censoring and enforcing cryptocurrency bans.
Anonymity is one of the most compelling arguments in favor of Bitcoin, and the validity of this assertion was put to the test last week when the Royal Canadian Mounted Police (RCMP) Canada’s national police force issued an order requiring all FINTRAC-regulated organizations in Canada to stop interacting with 34 cryptocurrency wallets linked to the Trucker’s Freedom Convoy.
In particular, crypto became one of the critical ways of contributing to the truckers following GoFundMe’s decision not to distribute $9 million raised on its platform.
Pro-Bitcoin President of El Salvador to Offer Citizenship for Foreign Investors
El Salvadora President Nayib Bukele wants to offer citizenship to those who invest in the small Central American nation. President Bukele recently took to Twitter to inform the crypto community that he was sending a list of 52 legal reforms to Congress. Among the most notable proposals, Bukele called for the removal of red tape, reducing bureaucracy, creating tax incentives, and, most importantly, offering citizenships to foreigners looking to invest in the nation.
He said:
"I’m sending 52 legal reforms to congress, to remove red tape, reduce bureaucracy, create tax incentives, citizenship in exchange for investments, new securities laws, stability contracts, etc. The plan is simple: as the world falls into tyranny, we’ll create a haven for freedom."
The president promised to make El Salvador one of the most freedom-centric countries at a time when the world is falling into “Tyranny.” Bukele has become a flag bearer for Bitcoin adoption but an equally controversial figure in international politics for the same reasons. Recently, a group of senators in the United States introduced new legislation seeking to mitigate risks posed by El Salvador’s adoption of BTC as a legal tender.
President Bukele rebuked the new legislation and called the US senators “boomers” while reminding them that they have zero jurisdictions on a sovereign and independent nation.
El Salvador is set to launch its much anticipated billion-dollar Bitcoin Volcanic bonds in March next month. The funds generated from the bonds would be used to build the world’s first Bitcoin city.
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Bitcoin Network Activity Down 30% From Highs as ‘tepid’ Demand Mimics Mid-2019
Bitcoin is now seeing “tepid” demand just three months after hitting its latest all-time high, according to on-chain analytics firm Glassnode. In a recent tweet, researchers noted a change in Bitcoin on-chain activity compared to just three months ago.
Bitcoin’s descent from $69,000 to $33,000 was accompanied by a widely publicized crash in interest from mainstream consumers. Now, the latest data shows that for existing on-chain entities (holders of one or more wallets), the same is true.
The Bitcoin network typically sees around 275,000 active entities transacting compared to over 400,000 in November 2021. That reduction means that daily active entities are now at the same levels as in mid-2019 and even well below the peak of the last halving cycle in December 2017.
Glassnode commented:
“This level of activity is far below bull market highs, indicative of tepid demand from new users.”
Researchers added that regardless of the cycle phase, the trend is for entity numbers to grow, which they put down to Bitcoin’s network effect playing out as forecast. While the activity dip is considerable for such a short space of time, as Cointelegraph reported, wallet numbers are going up only, and those containing 0.01 BTC (around $400) or more now number almost 10 million.
Discussing the Glassnode data, popular Twitter account TXMC argued that even if the entities involved were or are not human, there is still a reason to send BTC over the network, thus validating the entity numbers at a given point.
Bitcoin Price Is Expected To Reach These Levels
Looking at the Bitcoin price chart, we can see that BTC has made a fairly strong recovery during the ongoing session. If the current positive sentiment persists, we could see BTC push towards $39,500. However, if sellers push the price down, BTC could slip back below $39,000.
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