Nancy Pelosi: Democrats and the White House are moving closer to COVID-19 stimulus agreement, Bitcoin price rallies towards $12.000
Bitcoin price has risen by more than 3% since the weekly price open as the pioneer cryptocurrency trades within touching distance of the psychological $12,000 resistance level. Bitcoin came after Federal Reserve Chair, Jerome Powell, discussed the possibilities of rolling out Central Bank Digital Currency and how the Libra project has reinforced the complexities of launching a national digital currency.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price faces a near-term resistance at $12,000, which will decide a possible bullish break
With BTC’s fundamental outlook appearing extremely bullish, a break above $12,000 could provoke a continuous rally towards the $13,000, placing the 2019 trading high around $13,900 firmly in focus.
According to Santiment, a clear-cut bearish divergence between rising prices and a falling number of Bitcoin daily active addresses has been forming over recent days, signaling a potential slowing in Bitcoin buying activity.
? $BTC‘s mild climb of around +3% this weekend was a bit of a surprise, considering the 730.5M daily active addresses transacting on the network Sunday was the lowest mark since June 28th. Our model points to a fairly clear-cut bearish divergence forming. https://t.co/D9acicGBRY pic.twitter.com/qcpYKIpSvH
— Santiment (@santimentfeed) October 19, 2020
As the deadline looms for the next COID-19 stimulus talks, any positive developments ahead of the election would almost certainly have the potential to override the bearish divergences outlined and send BTC towards the current yearly high, and possibly 2019 yearly high.
However, should the deadlock remain in place between Republicans and Democrats, and a stimulus package cannot be agreed upon until after the U.S. election. The mentioned on-chain and technical divergences may become even more hazardous for Bitcoin bulls over the coming weeks.
Crypto analyst Cryptorangutang believes Bitcoin will see some choppy price action before it can break $12,000:
“Now back to chopping around for a bit, maybe have some bears call for doom again. BTC is looking really good, alts are looking really weak. And we didn’t even properly break out yet.”
The coming few days should shine a light on the long-term significance of this latest push higher. It should also elucidate whether or not altcoins will continue bleeding as Bitcoin rallies.
House Speaker Nancy Pelosi: Democrats and the White House have moved closer to a coronavirus stimulus deal
House Speaker Nancy Pelosi downplayed the importance of deadlines she set to reach an agreement before the end of the day, signaling that she would continue to negotiate. To get the law ready before Election Day, lawmakers will have to agree and write the bill by the end of the week.
“It is that this day was a day that we would have a deal; it was a day that we would have our terms on the table to be able to go to the next step.”
House Speaker Nancy Pelosi
Conversations between Pelosi and Treasury Secretary Steven Mnuchin on Tuesday will continue a desperate attempt to reach a bailout deal ahead of the Nov. 3 election. Democrats and the Trump administration have struggled for months to overcome a fundamental disagreement over what the US government should do to lift the health care system. The economy collapsed under the weight of the pandemic.
The parties narrowed their target for an overall downside price: The White House raised the offer to nearly $ 1.9 trillion, short of the $ 2.2 trillion level Democrats approved earlier.
On Tuesday afternoon, Pelosi said:
“White House has come a long way on a national testing strategy and offered legislative language that addresses the disproportionate effects of the outbreak on people of color. The sides still have not bridged a gulf over two of their biggest differences throughout the talks: state and local government aid and liability protections for businesses.”
Pelosi said she expected a proposal against a White House offer on both of those terms before she spoke to the Treasury Secretary.
The parties have agreed on the need to reinstate a supplemental unemployment benefit for jobless Americans, send another round of direct payments, offer a second loan to struggling small businesses, and allocate money to help schools reopen their doors safely. But Democrats and Republicans have not found common ground on how much federal money to put into the enhanced unemployment insurance, among a range of other disputes.
The biggest bottom line is whether to send more aid to municipality and municipalities, many of which have seen rising costs and declining revenue during the Covid-19 outbreak. . Democrats most recently pushed aid over $ 400 billion. The White House offered $ 250 billion despite President Donald Trump’s objections to what he called a “bailout package” for Democratic-run nations.
The president’s chaotic approach to relief negotiations has complex issues for negotiators. After Trump ordered his administration to pull out of coronavirus talks with Pelosi earlier this month, he reversed course and pushed for a full-blown pre-election deal.
Despite Trump’s comments, Mnuchin did not appear to push Pelosi to raise his stimulus bill prices. Pelosi has faced pressure from Republicans and members of her own secret meeting to accept a limited deal as the Americans wait for relief.
Many economists and policymakers outside the Capitol say the US will need more fiscal stimulus to get out of the recession. Fed Chairman Jerome Powell specifically spoke out, warning that Congress’s lack of action could lead to a weak recovery, creating unnecessary hardship for households and businesses.
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