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Previous analysis focused on the need for Bitcoin to flip $6,900 to support and also the importance of clearing the resistance cluster (pink) from $6,886-$7,250. Today’s move to $7,190 has ticked one of the two boxes but at the time of writing the price is still touseling with the 50% Fibonacci retracement at $7,136.
As things currently stand a close above the 50-MA (descending trendline) would be acceptable progress.
- Bitcoin Could Be At Bullish Turning Point
Far From the Only Sign
- Keep Your Heads Up; Bitcoin Could Fall Again
- The most pressing question
Bitcoin investors have been thinking about over the past few weeks is if the crypto bottom is in. While no one has a definitive answer as this market is ever-changing, evidence continues to mount that the bottom is near.
As we reported, investor sentiments remain bullish in the long term but market patterns still suggest a short term dump. The spike will see some gain more confidence that the market is headed up while others will remain pessimistic that this is a dead cat bounce.
For the green wave to continue, Bitcoin needs to retest its recent high of $7,200 and break above. Failure to reach or break this will lead to a violent retracement and a possible test of the $6,500 support level.
U.S. dollar-backed blockchain tokens are surging in popularity around the world, and this time much of the demand is for payments in normal business transactions, not just to move money quickly between cryptocurrency exchanges, Allaire claimed.
“Over the past several weeks, we have seen explosive interest and growth in USDC,” he said, referring to the stablecoin Circle issues in partnership with Coinbase. “There is clearly very significant global demand for digital dollars, and the use of digital dollars as a new payment medium.”
The daily candlestick has yet to close, and at the time of writing BTC was trading at $7,002. In order to explain this movement, well-known trader @CryptoCapo_ outlined a fractal comparing the recent increase to the one that transpired in March and May. The chart suggests that the price will soon reach a new high and begin a sharp sell off afterward.
Cryptocurrencies have been at the center of the debate surrounding the recent global pandemic and the resulting lackluster performance of most economies, the world over. The 12 March price crash in which Bitcoin lost over 50 percent of its value in a matter of hours highlighted the delicate balance between traditional financial markets and crypto. While Bitcoin has recovered most of its losses since then, the implications of the previous month’s price crash continue to retain significant importance.
- Bitcoin is still in a larger downtrend below the $7,500 resistance against the US Dollar.
- The price is currently consolidating above the $6,500 support area.
- There is a major bearish trend line forming with resistance near $7,580 on the daily chart of the BTC/USD pair (data feed from Kraken).
- The bulls are likely to face a strong resistance near $7,500 and the 100-day simple moving average.
“I think offshore and non-U.S. participation in getting access to [the U.S. dollar] through stablecoins is the culprit,” said Neil Van Huis, director of sales and institutional trading at digital asset financial services firm Blockfills. Van Huis also referenced the rise of other stablecoins, which compete with tether available on USD exchanges, also fueling growth. USDC, for example, is a joint venture between U.S. crypto companies Circle and Coinbase.
“I think at this point it’s not priced in. I think it was arguably priced in a few months ago from the point of view of the leverage, but then the spot buying not coming in. I think once the halving comes through and people see there’s less supply coming on the market, there’s going to be quite a big supply shock…
I think ultimately people will be surprised by how little supply there can be if we go into a run, and then new money comes buying in as well.”
- Facebook revamps its model for Libra as it outlines new plans to offer digital versions of single FIAT currencies (or stablecoins). The team expects a launch in 2020 itself.
- ‘Congresswoman Rashida Tlaib and her counsel introduce an Automatic BOOST to Communities (ABC) Act Bill which proposes ‘digital dollar’ implementation.
The cryptocurrency-focused investment firm revealed that last month’s crypto market crash largely contributed to its record inflows as institutional investors bought the crypto market’s dip, betting on Grayscale’s Bitcoin Trust (GBTC) Ether Trust (ETHE) and other products to gain exposure to the cryptocurrency space.
In comparison Grayscale, a unit of the New York-based Digital Currency Group, raised a total of $600 million in 2019, the year that had its previous record quarter.
- Researchers at the University of Luxembourg and Norwegian University show that an attacker can deanonymize Lightning Network channel balances.
- The research shows the tensions and tradeoffs a decentralized protocol such as Lightning faces when approaching problems of anonymity and routing efficiency.
- Addressing the problem could mean changing how the Lightning Network routes payments, among other things. And that could be a good thing.
Democrats from the House of Representatives have introduced legislation that would pay eligible Americans $2,000 a month until U.S. unemployment numbers return to pre-covid-19 levels. Under the proposal, any American citizen 16-years or older making less than $130K per year would receive monthly funding from the federal government.
According to Mike Belshe, CEO of BitGo, the Lumina acquisition has significant implications for his company and the whole cryptocurrency landscape:
“BitGo’s integration of Lumina’s Portfolio and Tax software is an industry game-changer. Clients have digital asset accounts across many exchanges and wallet providers, and that can lead to a fragmented or incomplete view of their digital asset holdings. BitGo clients now have a clear, intuitive dashboard with tax and reporting abilities, and these new services transform their ability to interact with digital assets.”