- Major digital currencies are recouping their yesterday’s losses following the Bitcoin’s U-turn
- Dash (DSHUSD) draws a noteworthy candlestick. Is it already time to buy?
- Goldman Sachs denies that Bitcoin (BTCUSD on xStation5) is or could become the new gold
The sell-off of cryptocurrencies didn’t persist too long. After a bleak session yesterday, Bitcoin has managed to trim all of its losses and now it could be poised to try to establish its new all-time high but firstly buyers have to tackle $5810. Other cryptocurrencies have recovered as well, however Ripple (XRPUSD) seems to be an exception as it’s remained on the back foot so far. Let’s take a quick look at the Bitcoin chart in order to outline a possible future scenario.
First of all, it’s worth mentioning what could have stood behind carnage on Bitcoin we saw on Wednesday. Namely, the US Commodity Futures Trading Commission (CFTC) released yesterday a report tilted “A CFTC Primer on Virtual Currencies” which said as a commodity, virtual currencies like Bitcoin fall under the oversight of the commission when they are used “in a derivatives contract, or if there is fraud or manipulation involving a virtual currency traded in interstate commerce.” Meanwhile, The Chicago Board Options Exchange informed earlier it plans to launch its own Bitcoin derivatives trading products by early next year. To sum up, Bitcoin buyers didn’t like greater oversight from the US regulators which could have been the reason why all digital currencies took a hit yesterday.
A technical view suggests that we could be approaching a critical resistance at $5810 and in case of a breakout to the upside, a move towards $6030 could be on the cards. This place has been determined by a 161.8% retracement of the decline which took place earlier this year. Until the price stays is unable to close the day below $5300, a bullish scenario appears to be the most likely.
Technically the Dash price managed to stay above an ascending trend line being a lower boundary of a triangle pattern as well. Moreover, this level is underpinned by a local support zone at around $280 whereas the yesterday’s candlestick suggests a fading advantage of bears. Having assumed that the price backs to its uptrend, a move towards an upper limit (ca. $320/330) might be expected.
At the end let’s present the Goldman Sachs attitude as for Bitcoin. The US bank denied that Bitcoin (other digital currencies alike) is or could become the new gold. Goldman Sachs mocked some commentators who dubbed Bitcoin “digital gold” just because of the fact it has a finite supply and has at times seen price rises due to geopolitical tensions. The bank concluded that gold is clearly better at holding its purchasing power and has much lower daily volatility.