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25 Oct 2019
2 min read

Facebook’s Hearing Before US Congress

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Written by OspreyFX News Team

U.S. Congress still not convinced by Facebook’s Project Libra

The big news in the crypto space comes from Mark Zuckerberg. Facebook’s CEO appeared before the Financial Services Committee of the House of Representatives in the United States. The issue that attracted the attention of traders was the Libra initiative.

The founder of Facebook had the difficult task of defending his project before lawmakers. He attempted to assure them that said project intends to solve the problems of the payment system within existing cryptocurrencies. The President of the Chamber, Maxine Waters, questioned Zuckerberg on banning cryptos advertising on the social network, claiming it was “deceptive technology”. Waters also said, “Facebook changes the rules when it can benefit itself”.

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Following the same line, the congresswoman told Zuckerberg that the Libra project could take advantage of its users’ data to dominate the cryptocurrency market.

The CEO of Facebook said the company had been working to improve its security systems after the 2016 U.S. Presidential elections. Zuckerberg still has a lot to say regarding his defence on Libra. Lawmakers are still suspicious of accepting such “Stable Coin”. However, he clarified that Facebook will not launch said project as a payment system until regulators approve it.

Bitcoin is out of the “uncertainty zone”

Finally, the “king of cryptocurrency” broke the range-bound that had it trapped since mid-September 2019. Ahead of Mark Zuckerberg’s hearing before the US Congress, bitcoin managed to plummet below a key support level of around $7,761.78.

All focus is currently placed on the $7,377.97 zone. Weakness could be seen for the price action in BTC over the upcoming days, due to the nature of the breakout. The 50 SMA at H4 chart acted as a dynamic resistance across the board, allowing bitcoin to gather bearish momentum. The 200 SMA is also pointing downwards, favouring the current scenario.

If the cryptocurrency continues to trade below the $7,700 handle, the bears will remain the dominant force. For the short-term at least. However, if bitcoin manages to move above the resistance level of $7,761.78 again, the bulls could retake control for a corrective move towards the 200 SMA. The RSI indicator remains in the oversold territory, signalling a possible corrective move, while the Momentum oscillator keeps its neutral stance in the short term.