Bitcoin Price Analysis: Will Trump’s Comments Spark A Bitcoin (BTC) Sell-off?
Today’s Bitcoin (BTC) News
At present time, the general furor is not about price volatility neither is it about the Bitcoin being perfectly distributed and decentralized. A lot has been said about Facebook and how its entry via Libra will at the end of the day boost Bitcoin and other altcoins.
Boasting of a broad base and over 1.5 billion users spread across all continents, Facebook is a force to reckon. Assuming there is high conversion and Libra turns out to be a reliable stablecoin, then it could be a threat for developing economies prone to hyperinflation.
However, the reverberations are being felt more in the US and Europe. Jerome Powell, the Federal Reserve Chief highlighted the grave concerns of national security and privacy brought about by Libra and Facebook.
Then again, given the bad track record of Facebook on matters privacy, Powell had this to say:
“Libra raises a lot of serious concerns. Those would include around privacy, money laundering, consumer protection, financial stability. Those are going to need to be thoroughly and publicly evaluated before these proceeds.”
With this stance, President Trump is chiming in, expressing his two cents and insisting that the USD is the only reliable, regulated and stable form of money, not Bitcoin and cryptocurrencies. In a tweet storm, the vocal US president said:
“I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National and International.”
BTC/USD Price Analysis
1 BTC/USD =$49,756.4209 change ~ -0.02%
Meanwhile, Bitcoin is vulnerable and volatile. Whip-sawing and shrinking from $14,000, bears have the best foot forward. At present time, prices are largely stable and trading above the minor support line at $11,200.
For buyers to remain in charge then, in line with previous BTC/USD trade plans, it is vital for bulls not only to build enough momentum and rally past $14,000 but behind this surge must be high participation.
As such, the breakout bar must be distinct from the rest and most importantly be propelled by high trading volumes exceeding those of June 26 of 82k. As it is, the world’s most valuable coin is vulnerable and likely to drag other coins with it.
Note that if prices drop below $11,200, or June 27 low, then the double bar bear reversal pattern of June 26-27 would be valid. That will likely spur a sell off and in that eventuality, BTC may slide to $9,500 or worse to $5,500 in a deep retracement.
Because of this likelihood, the best course of action for traders is to stay on the sideline, trading in either direction dependent on the breakout direction. Surges past $14,000 will place first targets at $15,000. On the flip side, losses below $11,200 and the middle Bollinger Band (BB)-a reliable flexible support, could see BTC drop to $9,500 and $5,500 on the lower end.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.