The BTCUSD chart continues to correct after updating the annual maximum just below $14000 at the end of June. The movement is concentrated in a fairly wide price channel with a height about $4000. In just a week, from July 10 to July 17, quotes dropped from an upper to a lower channel border, and main cryptoasset lost more than 30% of the price.
After reaching the lower border of the channel, local upward correction began. Crypto fear & greed index (FGI), recorded several local minimums at 16 and 19 base points. The indicator has not been in the oversold zone for a long time and confirmed the reversal. The main question for understanding short-term price movement perspective is whether bulls can overcome $10600 level, or more precisely, area of $10600-11000. If successful, quotes are expected to return to the upper borderof the channel, area of $12500-13000. Bitfinex retail investors also believe into further growth. The ratio has slightly decreased, however, there are BTCUSDLONGS/BTCUSDSHORTS more buyers than sellers. However, if the current trend continues with the same dynamics, it is likely that a return to the lower border and even breakthrought it. According to the indicator of the volume profile, a strong level of interest from buyers will be only near $8,000.
The market is now quite emotional, it is enough to recall that the last decrease of 30% occurred against the background of insufficiently convincing answers from Calibra CEO David Marcus in the US Congress. Libra project has attracted very serious attention. Stablecoin, planned by Facebook, have little relevance to bitcoin and most of other cryptocurrencies, but this kind of business case is interesting primarily from the reaction of regulators. On the one hand, they are interested in this project, they see potential in it. On the other hand, they are afraid of this potential, and they are absolutely right in this fear.
Having a multibillion user database, Libra will make a real competition to fiat currencies. Central banks assume certain obligations in order to maintain national monetary policy. At the same time, corporations like Facebook only aim at making profit. Without the most severe regulation, no one will open this Pandora's box. And if representatives of the global banking system feel threatened by other cryptocurrencies in the future, for example, Bitcoin, they will already have a precedent for global regulation. In the end, the blockchain can not be regulated, but companies and people who use it can always become points of failure. India has recently demonstrated such an example.
After reaching the lower border of the channel, local upward correction began. Crypto fear & greed index (FGI), recorded several local minimums at 16 and 19 base points. The indicator has not been in the oversold zone for a long time and confirmed the reversal. The main question for understanding short-term price movement perspective is whether bulls can overcome $10600 level, or more precisely, area of $10600-11000. If successful, quotes are expected to return to the upper borderof the channel, area of $12500-13000. Bitfinex retail investors also believe into further growth. The ratio has slightly decreased, however, there are BTCUSDLONGS/BTCUSDSHORTS more buyers than sellers. However, if the current trend continues with the same dynamics, it is likely that a return to the lower border and even breakthrought it. According to the indicator of the volume profile, a strong level of interest from buyers will be only near $8,000.
The market is now quite emotional, it is enough to recall that the last decrease of 30% occurred against the background of insufficiently convincing answers from Calibra CEO David Marcus in the US Congress. Libra project has attracted very serious attention. Stablecoin, planned by Facebook, have little relevance to bitcoin and most of other cryptocurrencies, but this kind of business case is interesting primarily from the reaction of regulators. On the one hand, they are interested in this project, they see potential in it. On the other hand, they are afraid of this potential, and they are absolutely right in this fear.
Having a multibillion user database, Libra will make a real competition to fiat currencies. Central banks assume certain obligations in order to maintain national monetary policy. At the same time, corporations like Facebook only aim at making profit. Without the most severe regulation, no one will open this Pandora's box. And if representatives of the global banking system feel threatened by other cryptocurrencies in the future, for example, Bitcoin, they will already have a precedent for global regulation. In the end, the blockchain can not be regulated, but companies and people who use it can always become points of failure. India has recently demonstrated such an example.
Running towards $9000 - a lower channel border