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No need for pre-approval

As reported by U.Today, Facebook relaxed is crypto ad ban back in June, but ICOs were still barred from the website. Despite this announcement, the social media giant continued to blackball the majority of crypto-related ads. The thing is, Facebook only readmitted the companies that already got the green light before the ban, but the majority of new submissions have been rejected (mostly for some obscure reasons).

Now, a wide range of crypto-related ads does not need to be pre-approved at all. It appears that only those ads that are promoting ICOs and other crypto projects will be vetted as usual by Facebook.

“While we will still require people to apply to run ads promoting cryptocurrency, starting today, we will narrow this policy to no longer require pre-approval for ads related to blockchain technology, industry news, education or events related to cryptocurrency,” the blog post read.

Back in October, Google also reversed its crypto ban for regulatory compliant exchanges after banning crypto ads along with a slew of other tech companies, such as LinkedIn and Snapchat.

Mark Zuckerberg Shuts Down P2P Payments in Messenger – Getting Ready to Launch ‘Facebook Coin’?

Facebook’s crypto bet

Facebook had no choice but loosen its grip on crypto since it’s prepping to issue its own cryptocurrency that is supposed to become a major disruptor in the industry. Facebook’s foray into crypto is allegedly the reason why major institutions are becoming enthusiasticabout digital assets.

Bitcoin (BTC) scaled an important price resistance with double-digit gains in April, solidifying the long-term bull breakout witnessed four-weeks ago.

The crypto market leader closed (UTC) at $5,269 on Tuesday, representing a 28 percent gain on the April 1 opening price of $4,092, as per Bitstamp data. That’s the biggest monthly gain since April 2018, as discussed yesterday.

Importantly, April’s close put prices above the 21-month exponential moving average (EMA), currently at $5,248.

That EMA had emerged as a strong price floor in the five months to October 2018, forcing many to conclude that the bear market had ended near $6,000. Bitcoin, however, dived below $6,000 on Nov. 14 – falling to lows near $3,100 by mid-December – and, with that, the 21-month EMA became the level to beat for the bulls.

Now that BTC has secured a monthly close above that key hurdle, the long-term bearish-to-bullish trend change confirmed on April 2 looks more credible. As a result, a rally to $6,000 in the next few weeks cannot be ruled out.

As of writing, BTC is changing hands at $5,300 on Bitstamp – up 2.4 percent on a 24-hour basis.

Monthly chart

As seen on above left, April’s candle closed just above the 21-month EMA, the first monthly close above the key average since October 2018.

The bullish close comes four weeks after bitcoin first confirmed long-term bullish reversal by violating the most basic of all bearish patterns – the lower highs and lower lows – with a high-volume break above $4,236 on April 2.

The chart also shows a falling channel breakout, which indicates a bearish-to-bullish trend change. It is worth noting that a similar bearish channel breakout in October 2015 was followed by a 2.5-year bull market (see above right).

Essentially, BTC has activated twin bullish cues – a falling channel breakout and a close above the 21-month EMA – with April’s close at $5,269. These developments are remarkably similar to the ones seen in October 2015.

Daily chart

The above chart shows bitcoin has again bounced up from the 30-day moving average (MA), weakening the case for a deeper pullback put forward by the bearish divergence on the 14-day relative strength index (RSI).

It is worth noting that BTC has suffered significant price pullbacks following the confirmation of the bearish RSI divergence in the past.

This time, however, the pattern seems to have failed, with the price bouncing up from the 30-day MA, a sign of strong bullish sentiment. As a result, BTC could revisit and possibly breach the recent high of $5,627 reached on April 23.

The case for a temporary pullback to the 50-day MA, currently at $4,706 would strengthen if and when the price closes below the 30-day MA at $5,184.

Source: Coindesk