In Argentina, Bitcoin: USD/BTC (BTC=X) is once again in vogue

In Argentina, Bitcoin: USD/BTC (BTC=X) is once again in vogue

Argentina is once again trending, as support for Bitcoin rises following unexpected restrictions on purchasing the US dollar.   

In Argentina, Bitcoin is once again in vogue.

According to reports, its central bank reduced the number of dollars a person can purchase within a month. Back in September, the government placed a $10,000 limit. However, on Sunday it changed its mind: the limit now stands at $200, a 98% plunge.

Concurrently, the Argentine peso (ARS) has been on a free fall this year, experiencing annual inflation of over 50%.

The Central Bank of Argentina (BCRA) explained that this measure was approved in a bid to protect the reserves of the central bank. The statement reads: “Given the current degree of uncertainty, the Board of Directors of the BCRA decided to take a series of measures this Sunday that seek to preserve the reserves of the Central Bank.” The capital restriction on purchasing the dollar is expected to last “until December 2019.”

The bank further disclosed a limit of “$200 per month for dollar purchases for individuals with a bank account and $100 for the number of dollars that can be purchased in cash. These limits are not cumulative.”

It also added that exporters will no longer be able to utilize revenue from sales abroad.

Increased bitcoin (BTC) usage

The decision comes simultaneously with Bitcoin’s third strongest week on peer-to-peer trading platform Localbitcoins. In light of the government’s decision, Argentines have expressed their displeasure by switching over to Bitcoin. Thus, according to Coin Dance accounts traded 14.15 million ARS which is $240,000 (according to last week’s prices).

Localbitcoins trading volumes for Argentine peso (ARS)

Source: Coin Dance

Several Bitcoin analysts have enumerated the advantages of shifting to Bitcoin. For instance, Rhythm said: “It’s not your money if you need permission to use it.”

It is noteworthy, that the former President of Argentina, Mauricio Macri, had more faith and interest in Bitcoin. He allegedly entered into an agreement with Tim Draper, a venture capitalist, to approve bitcoin as the country’s currency. 

The events in Argentina bring to mind the ideas of the well-known anti-virus guru, John McAfee. He believes that the DEX platform, a decentralized platform with no restrictions and no records, is the only way to break the bands of governmental control over our finances.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 10,234.02.

The projected lower bound is: 8,351.04.

The projected closing price is: 9,292.53.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 18 white candles and 32 black candles for a net of 14 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 73.9989. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 60.39. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 23 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 86. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 5 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed down -137.080 at 9,307.430. Volume was 74% below average (consolidating) and Bollinger Bands were 17% wider than normal.

Open     High      Low     Close     Volume___
9,442.7509,486.9009,167.5009,307.430 21,735
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 8,676.88 8,817.15 8,988.18
Volatility: 108 70 79
Volume: 77,786 80,296 85,213

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX BTC= is currently 3.6% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of BTC= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 5 periods.

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