Summary:

  • Bitcoin (BITCOIN) continues its slump being traded below a $11k mark
  • Federal Reserve official does not think Bitcoin poses threats to the US dollar
  • BTC daily transactions fail to rebound heralding no bounce in the cryptocurrency

Tuesday was possibly one of the worst days for the whole cryptocurrency block. While everybody zoomed in on Bitcoin as it’s recognised as the most trade-able digital currency even heavier declines were seen elsewhere. For instance, Ripple was down 26%, Bitcoin Cash plunged 24%, IOTA went down 27% while the most impressive slide was seen in Bitconnect Coin which plummeted as much as 91%. Technically Bitcoin seems to be at a crossroads as the price remains a touch above a lower boundary of a short term descending channel. So at first let’s take a look at the chart beneath, then we are going to focus a particularly interesting speech from a FED’s official.

link do file download linkBitcoin keeps trading below a $11k mark while the price broke through a key medium-term triangle pattern. Source: xStation5

A technical view seems not to be supportive of the cryptocurrency buyers as the price already slipped out of the triangle formation which could lead to a more severe pullback. Do notice that bulls are currently struggling to maintain the price above a lower boundary of a descending channel being underpinned by a 61.8% retracement. Once they fail to do so, it could give a rise to an extended slide with a target placed as low as $5,500. This level has been set based on a breadth of the broken triangle formation and it more or less coincides with the level where Chinese miners could become unprofitable. Therefore, it would be a possible tipping point where more buyers could lurk. However, before the price tries to achieve this point bears will have to deal with a $7,900 mark which could constitute an obstacle for them.

Federal Reserve official does not see threats from Bitcoin to US dollar

According to Neel Kashakri, a member of the Federal Reserve, Bitcoin and other digital currencies do not represent a significant threat to the US dollar. Minneapolis FED President added “I do not see Bitcoin as a credible competitor to the dollar in the United States of America, and the reason is the barrier of entry to you creating your own coin and me creating my own virtual currency … is zero”. It was not the first time when Kashakri weighed in on cryptocurrencies as he pointed recently that blockchain technology is possessing a higher potential for use in society over any digital currencies.

Bitcoin daily transaction continue shrinking despite the last bounce

link do file download linkThe count of Bitcoin daily transactions fell during the past several days. Source: Bitcoin.com

Having looked at the amount of daily transactions in Bitcoin one may draw conclusions that the Bitcoin price could struggle to bounce back any time soon. Based on the calculations provided by Bitcoin.com the count of daily Bitcoin transactions (a 14-day moving average) dropped over the course of the past few days suggesting fading interest from ordinary users all around the globe. Notice that a rise in daily transactions has tended to coincide with an increase seen in the price, hence until we do not see a turnaround in the count of transactions any larger bounces in the cryptocurrency seem to unlikely.