Bitcoin Price Analysis - February 1

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BTCUSD Long-Term Trend: Bearish

Resistance: $10,400, $10,300, $10,200

Support: $9,600, $9,800, $10,000

Yesterday, the price charts indicated that bitcoin is back above $10,000. However, there is doubt about how long the bitcoin will maintain its current status. It has moved up to about $10,300 but the trend is still bearish. The 50-day moving average (MA) and 20-day moving average are trending lower. The 20-day moving average has a stronger bearish move; whereas the RSI indicator shows that price has reached the oversold condition.

However, today the market is still bearish; the gains of yesterday may not be sustained. The support levels of $9,600, $9,800, and $10,000 may be breached.

BTCUSD Short-Term Trend: Bearish

The bearish move seems to have begun in earnest. The gains of yesterday may be erased. However, the market is retracing at a price of $10,275 and in a downtrend, it is expected that if price retraces from the low, it will encounter resistance at one of the Fib retracement levels of 23.6, 38.2, 50.00, or 61.8 which will give traders the opportunity to short.

The principle behind price action is that if an exhaustive candlestick forms above or below a Fib retracement level, it gives you a confirmation that the level will hold for some time. The price retraced and breached at Fib retracement level of 23.6. However, the support level of 9,600, 9, 800, and 10,000 would be tested as the downward trend gathers momentum.

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Israel Bitcoin Association Petitions Banks to Reveal Crypto Policy

Neil Dennis

A number of Israel's bitcoin traders have already filed lawsuits against the country's banks and on Monday traders lodged a formal petition demanding that the financial industry explains its cryptoasset policy.

Israel's banks have barred the country's crypto investors from depositing the returns on their bitcoin and other digital currency investments due to the nation's strict laws on money laundering and the financing of terrorism.

In recent months banks have even blocked investors who are known to trade cryptoassets from opening accounts, according to a report by Israeli business journal Globes.

Central Bank Warning

Israel has seen strong growth in digital currency investment in recent years and in 2014 the Bank of Israel, the nation's central bank, issued a warning - in co-operation with the Tax Authority and several regulatory agencies - about the dangers associated with the use of virtual currency, including fraud and money laundering.

Taking aim directly at financial services providers, the statement said:

As the use of virtual currencies enables their anonymous transfer, in many cases evading the need to use financial institutions that are subject  to an anti-money laundering and terror financing prohibition regime, this is an activity with a high risk co-efficient in terms of money laundering and terror financing. Therefore, financial institutions must take this into account within the framework of their risk management policy.

Injunction

Israel's top legal authority is well aware a problem exists. In February 2018, the Supreme Court issued a temporary injunction prohibiting a bank from blocking activities in an account held by a company that engaged in bitcoin trading.

The bank, however, countered the Supreme Court's injunction, citing the 2014 Bank of Israel warning regarding the risks of bitcoin trade. The bank alleged that activities exposing the bank to such unlawful acts might "harm its reputation and public trust in the bank".

While the injunction stood, it did not affect the bank's right to examine individual activities in the account, nor did it affect the bank's ability to take steps to minimize risks associated with the business activities of the company.

Freedom of Information

The freedom of information petition filed in the Jerusalem District Court on Monday by the Israel Bitcoin Association demands that commercial banks make public their policies on cryptoassets.

Jonathan Klinger, legal adviser to the Bitcoin Association, told Globes:

Under the Banking (Licensing) Law, it is the duty of a bank to state to the Bank of Israel the policy under which it refuses to conduct transactions. We therefore contacted the Bank of Israel and asked for this information, but the Bank of Israel did not agree to disclose this policy to us. We therefore decided to petition the court to force the Bank of Israel to provide us with a copy of the policy submitted to it by the banks.

Lawsuits

Last week the Tel Aviv District Court received a petition for approval of a 75 million shekel ($21.3 million) class action suit against Bank Hapoalim that alleges the bank refused a customer seeking to deposit money from the sale of digital currencies.