The first part of the week was more than optimistic for Bitcoin. However, now it is going through the correction phase.
Martin Weiss, the founder of Weiss Ratings: “Like gold, Bitcoin and other cryptocurrencies could become a haven for investors who flee from fiat currency devaluations. In fact, in one key aspect, it may be even better than gold: It cannot be confiscated by any government.”
Tuesday happened to be the most volatile day for Bitcoin this week, as the cryptocurrency fell below the $3,500 level, but managed to rebound quickly to the levels near $3,600. On the H4 chart, we can see that the grandfather of cryptocurrencies has been trading within the $3,586-3,642 range for the last three days. The rebounds from these levels may be used to open positions. For now, Bitcoin has already tested the ground below the support at $3,586. If this level is broken, the next support lies at $3,563. In case bulls get stronger, they may push its price above the resistance at $3,642. The next resistance is placed at $3,658. However, the overall picture of the market and the trend are still bearish. That is why we may expect further falls.
- Chicago exchange CBOE has canceled its request to approve VanEck and SolidX Bitcoin ETF (exchange-traded funds) due to the current government shutdown. It plans to ask for the approval again when the Security exchange commission starts to work.
- Cryptocurrency bank Galaxy Digital plans to invest $250 million to issue credits to blockchain companies, which struggle with the bear market.
- The candidate for the US president post, a huge supporter of crypto and the founder of the famous antivirus software John McAfee left the country after he was indicted on charges of tax fraud.
- The market anticipates the presentation of the TON blockchain network and GRAM token by Pavel Durov during the World Economic Forum this week. This is a highly important event, which may affect the market positively. According to the news, TON will be launched in March.
- The “World Economic and Social Survey 2018” report by the United Nations said cryptocurrencies and blockchain allow to switch their confidence from banks and governments to program codes.
- Japanese Regulators Approve Startup’s Bitcoin Sidechain Trial for Exchanges
- Chili and Romania plan to apply taxes on crypto operations’ income.
- The United Arab Emirates and Saudi Arabia develop a cryptocurrency for payments between banks or governments.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…