The first part of the week was more than optimistic for Bitcoin. However, now it is going through the correction phase.
Jeremy Gardner, founder of Ausum Ventures: “The point is to get people to think about bitcoin, not spend it. I don’t think it’s good for that. It’s not meant to be used like cash.”
Bitcoin has stuck again: the digital currency has been trading sideways since the last Friday between $3,566 and $3,790 levels. The highly anticipated Ethereum’s update Constantinople failed to create additional volatility to the crypto market due to its postponement. The reason for that delay was a potential security vulnerability in the Ethereum’s chain.
For now, the grandfather of cryptocurrencies has been trading below the 50 MA on the H4 chart. If bulls manage to push bitcoin up, the price will retest the resistance at $3,720. If it’s broken, the next resistance is placed at $3,746. In case of a bearish pressure, bitcoin will fall to the support at $3,685. The next support is at $3,660.
In other news:
- The popular New Zealand crypto trading platform Cryptopia was hacked on Tuesday. According to news, the platform suffered significant losses.
- The president of Venezuela Nicolás Maduro raised the price of the national crypto El Petro from 9 to 36 thousand bolivars. In addition, he gave orders to sell 15% of the exported oil for El Petro. It’s uncertain, which countries it will be sold to, though.
- Chevron and Total oil companies joined Vakt blockchain platform to trade energy resources.
- R3 blockchain-consortium launched its own platform named Corda
- Vlad Zamfir, an Ethereum developer and one of the main creators of the Casper protocol will cooperate with the Casper Labs start-up, which develops a separate blockchain using this protocol.
- Blocksteam presented the API beta-version of its own project Satellite. It will help to send bitcoins to any part of the world through satellites.
- Malaysian government officials are still undecided on whether or not they will legalize cryptocurrency. The matter is still under consideration, which is frustrating those looking to seize the moment to help the Malaysian cryptocurrency industry grow.
The RBA will make a rate statement on August 4 at 7:30 MT time.
The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.