The first part of the week was more than optimistic for Bitcoin. However, now it is going through the correction phase.
Stephen Pairs, Bitpay CEO: “I used to say 10 years, but now I think it’s more like 3-5 years until you can go into a restaurant, a retail establishment, and just everybody’s going to expect that that store will be able to accept a blockchain payment.”
Crypto market finally entered the correction phase. The price for Bitcoin rebounded from the $3,222 level on Saturday and continued to go up. On Thursday it managed to stick above the $4,000 level. If bulls continue to pull the price further, it will manage to rise towards the resistance at $4,337. The next resistance is placed at $4,753. In case of the bearish pressure, the price for the oldest cryptocurrency will fall towards the support at $3,660. If we look at the technical side, we can see that the price created lower lows on the daily chart, while MACD formed higher lows. This situation is called convergence and signals reversal to the upside. In addition, Parabolic SAR shows an uptrend for Bitcoin. It is a good sign for the further rise of the grandfather of cryptocurrencies.
In other news:
- The cryptomarket has grown by $10 billion in several days. Can you believe it?
- The Bitcoin mining’s difficulty declined by 9.5%. It means that miners will get back to work soon.
- Two US congressmen suggested to exclude cryptocurrencies from the securities classification and improve the tax treatment for currencies.
- French authorities refused to cut taxes for the owners of crypto assets. The current tax is held at 36%.
- The British government suggested providing the Financial Conduct Authority (FCA) with additional rights to regulate cryptocurrency assets.
- Facebook announced the stablecoin’s development for WhatsApp users. At first, it will be launched in India.
- The construction of the crypto heaven in Malta continues: RnF Finance Limited submitted a request for blockchain bank’s license.
Just for fun:
- The famous trader Mark Dow closed the short position for Bitcoin, which he was holding for the whole year. He opened position when BTC’s price was at the top. Now we know the reason for the bearish market :)
The bullish movement in the stock market is gaining speed, and Bitcoin ETFs are closer than they might seem. What do we need to know for the next trading week?
The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).