Cryptocurrency Market News: A small bounce back has been noted today
|There has been a bounce-back in sentiment in cryptosphere on Wednesday.
Bitcoin has pushed 0.82% higher on the session after the epic price drop on Tuesday. It's not much to write home about at this stage and its certainly not much of the 6.73% fall from the prior session. The daily timeframe is showing a massive Relative Strength Index (RSI) divergence. This is when the price makes a higher wave high but the RSI indicator makes a lower high. The next key support zone on the downside is 8600.00 and if this breaks it would make a new wave low. There are some good technical signs though as the MACD histogram is above the zero midline and the signal lines are still also above the mid area. The trend is still technically moving higher so until a lower high lower low pattern has been confirmed the bulls still seem to be in charge.
Ethereum has recovered from the massive drop on June 2 and it’s trading at $239 at the time of writing. What are the most important levels for ETH/USD now? The Technical Confluences Indicator is showing a significant amount of resistance at $239.65, the convergence of the 15-min SMA10, and SMA5. More resistance can be found at $240.48 where the previous hourly and 4-hour highs have formed as well as the upper line of the 15-min Bollinger Band.
Litecoin has been performing well on Wednesday after the crypto capitulation on Tuesday. On the daily chart, there is a huge confluence level at the 50.00 area. At the aforementioned level, there is a psychological resistance, historical support, the Fibonacci 38.2% retracement and the 200 Simple Moving Average (SMA). The candle yesterday (Tuesday) looks like it rejected the zone as the highest price point of the day was 49.90. Looking at the indicators, the Relative Strength Index is languishing just above the 50 zone but there is a clear lack of direction. The MACD histogram is positive just above the midline and the signal lines are also above the zero line, this is also positive. On the downside a break of 41.79 would be the confirmation of the berish move so keep an eye there.
Canada regulates crypto exchanges as money service providers.
The new regulation which refers to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act passed in June 2019 was enacted on June 1st, 2020. Addressing the holes in the framework, Canada now classifies crypto companies as the ones that provide money services.
Both domestic and foreign companies that would like to provide services to Canadian customers will be regulated as Money Services Businesses (MSBs) which means they have to register and comply with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
As required of all MSBs, persons and entities dealing in virtual currencies would need to fulfill all obligations, including implementing a full compliance program and registering with FINTRAC.
Time-locked Bitcoin transactions allows miners to steal bitcoins from each other.
Over a million of time-locked Bitcoin transactions between September 2019 and March 2020 were misconfigured. This bug made them vulnerable to hack attack with the aim to steal cryptocurrency. The bug affects 2% of all transactions in the Bitcoin network, according to a study performed by the developer aka 0xb10c.
Time-locked transactions prohibit the recipient from using bitcoins as soon as they are deposited. They have to wait until a certain condition is reached. For example, a timelock can be configured to expire when a certain number of blocks are added to the network, or at
an approximate point in the future.
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