- Bitcoin (BITCOIN on xStation5) tries to bounce off a short-term support but key obstacles still ahead
- Russian largest bank by assets opens a blockchain lab aimed at developing, testing and piloting blockchain projects
- Bitcoin miners earn less as the cryptocurrency price has come off its record high set in December
Bitcoin volatility was quite contained over the weekend as the price stayed within a short-term consolidation. Although sellers seem to still hold an advantage the price was reluctant to slip below a pivotal support area, hence one may draw conclusions that Bitcoin might take a stab at breaking a key resistance in the foreseeable future. At first let’s have a closer look at a Bitcoin chart in order to determine the future moves, then we are going to write about the two interesting stories related to the BTC.
Looking at a H4 chart of the most famous cryptocurrency in the world one may spot that the price was able to maintain above a crucial support area at around $10,900. Since then we have gotten a bullish engulfing which might enhance bulls’ odds to continue their increase in the nearest future. However, even as buyers seem to have taken control on the market there are still at least two important hurdles which have to be jumped over once bulls want to keep on rising. The first one is an upper boundary of a descending channel which acted on Saturday when there was a false breakout to the upside. Apart from it, there is a powerful resistance line placed at $12,550 being underpinned by a 50% retracement. To sum up, until the Bitcoin price hovers below the two above-mentioned resistances sellers might still hope for a larger retreat which would take the price even toward $5,500 based on a broad triangle formation.
Sberbank opens a blockchain lab to develop technology-based projects
Although Russian authorities are still pondering specific regulations of cryptocurrencies, the country’s largest bank by assets Sberbank has decided to launch a blockchain lab in order to develop and test blockchain projects. The move is to provide business solutions for the wider Sberbank Group to cooperate with start-ups, associations, communities and alliances. The bank’s senior vice president Bulantsev said in a statement that “Blockchain can considerably reshape many business areas related to the financial market, as well as classic activities of the bank and our clients…It is important to note that blockchain helps market participants cooperate more efficiently.” And the end let’s highlight the Russian bank is already undertaking more than 20 blockchain-based pilot projects.
Gains from mining evaporate along with the fading price of Bitcoin
A Chinese crackdown on retail BTC exchanges has already had a considerable effect on miners’ profitability. Namely, a miner revenue function of the Bitcoin price and power cost suggests that mining in China is becoming less encouraging. Therefore, one may foretell that US and Europe-based exchanges, which operate in relatively favourable legal regimes, could be playing a larger role in the digital currency industry.