Crypto Industry News:

Lawmakers in Brazil received support to regulate the cryptocurrency market following allegations of fraud at Atlas Quantum, Zero10 and Trader Group last year. In February, the fruit of these activities appeared. The media reported that two large cryptocurrency exchanges based in Brazil have closed their operations due to the threat of high fines and direct effects of the regulations.

Acesso Bitcoin was one of the exchanges that voluntarily closed down. Its co-founder Pedro Nunes was quoted by a cryptographic portal said:

"After the introduction of these regulations by the Federal Tax Office, we noticed a significant decrease in trading volume. We also believe that the market has cooled down for smaller exchanges," he says.

Latoex, another cryptographic exchange from Brazil, has similar problems. Above the company hangs a fine of 100,000 Brazilian realities if it fails to comply with the suspension order issued by the Brazilian Securities and Exchange Commission.

Because Brazil does not currently have a dedicated right to deal with cryptocurrencies, all exchanges fall under the scope of normative instruction No. 1888 issued by the Federal Revenue Department. All companies carrying out cryptographic transactions in Brazil must report them or be fined between $ 120 and $ 360.

Both chambers of the Brazilian National Congress are examining proposals to regulate the national cryptographic industry. Meanwhile, the Senate is reviewing two other laws, PL 3825/2019 and PL 3949/2019. Since February 2020, no specific legislation has been introduced to establish rules for the cryptocurrency market in Brazil.

Technical Market Overview:

The BTC/USD pair has rallied to the level of $10,000 again and made a new local high at the level of $10,227. It means that the 61% Fibonacci retracement has been clearly violated and currently the market is consolidating the recent gains around the level of $10,000, which is the nearest technical support for the price. If, however, the bulls will decide to continue the rally, then the next target is seen at the very top at the level of $10,452.

Weekly Pivot Points:

WR3 - $11,039

WR2 - $10,715

WR1 - $10,112

Weekly Pivot - $9,845

WS1 - $9,424

WS2 - $8,941

WS3 - $8,335

Trading Recommendations:

The market might have made the first impulsive wave up of a higher degree. This strategy is valid as long as the level of $7,582 is not violated. Nevertheless, the larger timeframe trend is still down and all the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend until the level of $10,433 is clearly broken.