Argentina and Paraguay Settle Export Deal in Bitcoin in Landmark Event

Francisco Memoria

Paraguay has reportedly recently paid for an Argentinian shipment worth little over $7,000 in bitcoin, the flagship cryptocurrency, in an apparent first for both countries. The deal was made as part of new program incentivizing small shipments.

According to Cointelegraph en Español, Argentina sold Paraguay pesticides and fumigation products, and paid for the products in BTC, which was then converted to Argentina’s fiat currency, the peso, to pay the agricultural chemicals’ exporter.

The transaction was completed with the help of Bitex, a Latin American financial services firm that supports bitcoin payments. Per the news outlet Bitex’s chief marketing officer, Manuel Beaudroit, revealed the company is part of Argentina’s “Exporta simple” program.

The program reportedly aims to facilitate the exportation of goods and services worth less than $15,000, and Bitex’s role in it is to try to make cross-border payments more efficient.

The deal is significant as the flagship cryptocurrency was used as an alternative to the legacy SWIFT payment network. Notably, the cryptocurrency scene has been growing Argentina, as the country ended 2018 with new cryptocurrency ATMs.

As CryptoGlobe covered, rising inflation that saw the Argentine peso fall 35% against the USD has seen bitcoin trading volume on the peer-to-peer exchange LocalBitcoins increase dramatically.

More recently Argentina’s transport system SUBE (Sistema Único de Boleto Electrónico) has recently started accepting bitcoin payments. The transport system is said to be used by over seven million people in 37 different locations.

Bitcoin Continues Correction to the Downside Amid High Stakes — Price Analysis

Colin Muller
  • Short term trend: Good chance for an end to the downtrend soon
  • Medium term trend: Uptrend intact but coming under more pressure
  • Long term trend: Downtrend holding strong, unchallenged

As we correctly forecast here yesterday, Bitcoin (BTC) has completed its consolidation around $8,600 and continued to the downside in an extension of its correction from $9,100. It has entered clear support starting at about $8,200, and there is a decent chance of the correction find a bottom within that zone.

We start on the 4-hour and see that the drop in volume telegraphed today’s move down. The typical 3-wave movement of a correction is likely to find support above $8,140 or thereabouts, with support derived from recent resistance.

Within supportBTC chart by TradingView

The histogram is still pointing down hard at time of writing, implying that momentum is still to the downside and might take a bit more time to bleed off. Of course, all of this assumes that Bitcoin’s movement here is a simple correction and not a trend change; in other words, this assumes that the medium-term trend is still up, which may well turn out to be false.

If we take a look at the daily, we see that the scope for a retracement is liberal within the medium timeframe uptrend, starting on January 3. Price can come down to $7,700 without setting off major alarm bells within this market structure; down, namely, to the “golden pocket” .618-65 area of the Fibonacci scale.

Plenty of roomBTC chart by TradingView

We see that the RSI here is engaging a key inflection point on its scale, around 50%. Ideally, we’d like to see this hold and preserve a strong medium uptrend. The histogram looks alarming here, poised to cross over negative with a decent momentum. It is noteworthy that the last two times we’ve seen this, Bitcoin was bought up at the 11th hour and the medium uptrend preserved.

High stakesBTC chart by TradingView

Finally, moving to the weekly chart, we see the larger picture and the overall risky position that Bitcoin is in. The leading crypto has so far soundly failed to break out of the downtrend it's been in for seven months, and failed to surmount the important $9,100 mark.

At this point, it is threatening to again lose the 21-week EMA; and this would put the 55 EMA into serious question. This week is likely very important for setting Bitcoin’s trend in 2020 – and so far, things are not looking great.

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

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