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By Feb. 13, Bitcoin (BTC) was trading at $10,500 and bullish analysts forecasted that any day the $11,000 and $11,500 resistance levels would be obliterated, opening the door for a swift return to the $12K zone. Even as Bitcoin price rejected at $10,400 and pulled back to $9,500 investor sentiment remained bullish as many analysts believed a retest of $9,400 was inevitable.
All of this changed with the arrival of the coronavirus. Formally known as COVID-19, the virus had been making news headlines since late December 2019 but the last two weeks saw the fear of contagion spread to global markets as investors began to ponder the worst-case scenarios in which the spread of the virus could impact economic productivity.
As the rates are lowered, money is injected in the economy setting investors on a buying spree on several assets with the S&P 500 expected to be the biggest beneficiary. Safe haven assets such as gold and other precious metals are also a popular choice and with the price of Bitcoin on a spike through 2020, a number of investors may look towards the digital assets.
According to the chart posted by Milne, BTC is in the middle of forming a descending broadening wedge. It is generally believed to be a bullish reversal pattern since it highlights that buyers are ambitious enough to take control of the market even though sellers do now show signs of exhaustion.
Milne determined his target by the highest point at which this pattern was formed ($8,990).
The global markets are currently caught within a far-reaching meltdown that has led virtually all asset classes – including Bitcoin – to shed some of their value, even with traditional safe havens like Gold seeing some downwards pressure throughout the past week.
This intense selloff has come about as investors flee what are commonly referred to as “risk-on” investments, which encompasses equities and other assets that are especially prone to selloffs during economic turbulence.
Despite the raging volatility of the global markets due to the coronavirus, Bitcoin is acting as a stable coin, and over the past week, we had seen it trading between $8500 and $9000, which is roughly a 5.6% price range.
Since the previous analysis from two days ago, Bitcoin had broken above our marked triangle (on the following 4-hour chart), and surged to the next resistance level at $9000, along with the 4-hour’s 50 moving average line (the pink line).
There, the primary cryptocurrency got rejected and dropped to resistance turned support price area at $8650. As of writing these lines, Bitcoin is trading around $8700.
“The fundamentals of the U.S. economy remain strong. However, the coronavirus poses evolving risks to economic activity. In light of these risks and in support of achieving its maximum employment and price stability goals, the Federal Open Market Committee decided today to lower the target range for the federal funds rate by 1/2 percentage point, to 1 to 1‑1/4 percent. The Committee is closely monitoring developments and their implications for the economic outlook and will use its tools and act as appropriate to support the economy.”
HODL Wave 3 is made up of UTXOs that are between 18-24 months of BAD. These are the investors who sat on the sidelines during Bitcoin’s 2017 bull run, but who bought BTC during the crypto winter, taking advantage of bear market lows to accumulate.
As hodlers increase, the lead cryptocurrency’s scarcity is magnified. This adds upside price pressure, especially with the incoming halving, which will reduce the supply new BTC produced. This could be a perfect storm to cause prices to explode.
According to a press release issued on March 3, 2020, open-source blockchain consortium Hyperledger has announced the addition of eight new members, including Clear, Conduent, and Walmart.
Launched in 2016, Hyperledger is an open-source distributed ledger technology (DLT) consortium that aims to “advance cross-industry blockchain technologies.” The project is, arguably, one of the most prominent endeavors in the blockchain space that is focused on mainstream adoption of the emerging technology.
While CoinDesk has been writing this report, four former Steem blockchain validators (known as “witnesses”) have been voted back onto the council of 20 nodes that keeps Steem running.
Steem validators tell CoinDesk that by hitting four validators it is no longer possible for the Tron Foundation to launch a contentious hard fork to change the economic rules governing STEEM tokens.
While Bitcoin regained its dominance of 63.7% at press time, the collective cryptocurrency market cap continued to flatter to deceive. The same was recorded to be $252.2 billion after a short-lived bearish phase. That being said, many altcoins seemed to show signs of life this week.
Despite the overall positive returns that XRP has seen over the past few months, the asset’s monthly chart is showing a harrowing sign:
The bearish reversal XRP exhibited in the second half of February left a massive wick (and failed to close) above the $0.25 horizontal, which has been of relevance for the cryptocurrency for over two years.
This suggests that the bear trend remains intact for the cryptocurrency.
The California-based brokerage firm is among Silicon Valley’s hottest financial technology startups, boasting a $7 billion valuation, a young, bright-eyed, client base in the millions, and of course its sleek trading app. Still, over the past year, the firm has hit a few bumps on its journey to toppling the Wall Street old guard, botching the launch of its checking account feature, getting slapped with a $1.25 million fine from self-regulatory organization FINRA, and most recently, of course, the two-day outage during the most volatile trading period since the financial crisis.
The Reserve Bank of Australia (RBA) says its ready to do all it can to regulate Libra and any other new “payment technologies” that make their way through the country’s borders.
Australia has been particularly hard towards Libra in the past, citing trust issues and even hinting that the platform was going to face hardcore scrutiny due to a largely unwelcoming attitude. This latest statement suggests that Australia may be giving into the idea that Libra – and systems like it – are part of a digitally enhanced future, and that there may not be a way around it.
Coin ATM Radar, known for providing Bitcoin ATM map, revealed that the total number of crypto ATMs has reached to 7,014 to date. These are not only supporting Bitcoin but the list also includes other cryptocurrencies: Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), and Dash (DASH).
In November 2019, the figure was at 6,000. This rapid increase in numbers shows that cryptocurrency is gaining the attention of masses speedily. According to the Ripple CEO, 2020 is the year of crypto regulation as various governments are devising policies for crypto’s usage. Once the regulatory bodies accept digital currency, the digital assets will boom replacing the fiat currency.