Crypto Industry News:
The Brazilian Senate announces that the law regulating the cryptocurrency market will be approved soon.
The new law will allow the president of Brazil to create a regulatory agency to oversee the cryptocurrency market. A draft law regulating the cryptocurrency market in Brazil is to be approved by the National Congress in the first half of this year.
The act, which has been the subject of debate in the Chamber of Deputies since 2015, was adopted in the first round of the session. The Senate joined her to another cryptocurrency bill that has already been approved by the Senate's Economic Committee.
Two legislators, Senator Iraja Abreu and Deputy Aureo Ribeiro, both named rapporteurs, are drafting a consolidated text of the law that will be put to the Senate's vote. However, approval of the law in plenary will not make bitcoin legal tender in Brazil, as it is in El Salvador. The proposed law will allow the President of Brazil to designate the federal entity responsible for setting the rules for cryptocurrencies. The president will either create a new regulator or delegate the function to the national Securities and Exchange Commission (CVM) or the Central Bank of Brazil (BC).
Technical Market Outlook:
The BTC/USD pair has bounced from the new local low seen at $39,240 and is heading higher towards the technical resistance located at $41,180. Only a sustained breakout above the level of $48,200 would change the outlook to more bullish and the down trend could have been terminated. The key short-term technical resistance is located at the level of $42,133. On the other side, the next target for bears is seen at the level of $37,509.
Weekly Pivot Points:
WR3 - $50,831
WR2 - $49,471
WR1 - $45,659
Weekly Pivot - $43,872
WS1 - $40,465
WS2 - $38,484
WS3 - $34,936
Trading Outlook:
The market still keeps trying to bounce after over the 60% correction was made since the ATH at the level of $68,998. So far Bitcoin bulls retraced only a 38% of the last wave down and reversed. When this level is clearly broken, the BTC is back to the up trend, otherwise the bearish pressure might push down the BTC towards the level of $29,254.
