California Governor refused to sign a bill that would have established regulatory framework for crypto; plus our weekly BTC and ETH analysis
- California Governor Vetoes Crypto Regulatory Bill
- Bitcoin/USD – BTC Bounces From Support
California Governor Vetoes Crypto Regulatory Bill
Last Friday, California Governor Gavin Newsom refused to sign a statewide bill that would have established a regulatory framework for crypto regulation. If this bill would have gone through it would have required cryptocurrency firms in the state to acquire a certain license to operate within the area. Governor Newsom argued that the authorities should impose more flexible rules “to keep up with the rapidly evolving technology and use cases of digital assets.” Earlier this year a crypto regulation bill known as AB 2269 was introduced and had it been approved, it would have prohibited businesses in the region from engaging with digital assets without obtaining a mandatory license from the California Department of Financial Protection and Innovation. Gavin, a known proponent of the blockchain industry, vetoed the bill and stated “such legislation would be a costly undertaking due to authorities needing a loan in the tens of millions of dollars to enforce the rules.” Governor Newsom has vowed to cooperate with the US officials and implement crypto-friendly rules for the region in the near future.
Bitcoin/USD – BTC Bounces From Support
BTC Daily Chart
BTC Weekly Chart
At the time of writing, bitcoin is priced at $20.2k and has bounced from the $18.9k range support level. Price is currently at the mid point of the range but if it is able to close over this level on a daily closing basis, I believe price can find its way to either the trendline resistance or the range resistance located at $21.7k. A successful daily close over the trendline would be very bullish as it would show bulls are stepping in and putting in a higher high and changing market structure.
Bitcoin Bull Scenario
Bitcoin reclaims either the midpoint level or the diagonal trendline level on a daily closing basis and I believe the range high is the next area to target.
Bitcoin Bear Scenario
Bitcoin loses the $18.9k range support on a daily closing basis and either $16k or $14k is the next area to watch as support.
ETH Daily Chart
ETH Weekly Chart
At the time of writing, Ethereum is trading at $1392, and has given bulls a bounce from the old range resistance which has now turned support located around $1200. As stated in last week’s article, the first level of resistance is still right above where price is currently located at near the prior 2017 ATH and the next level just above that is the weekly $1.8k resistance. If price can manage to reclaim the prior ATH level on a daily closing basis, the next area to target would be the weekly level at $1.8k.
Ethereum Bull Scenario
Ethereum reclaims the prior 2017 ATH level and the next area to watch for is the weekly $1.8k resistance.
Ethereum Bear Scenario
Ethereum does not reclaim the 2017 ATH level and the next areas of support from highest to lowest are $1.2k & $1k.