The State of the Market: What a week it has been! Bitcoin crashed and lead the rest of the cryptocurrency market to literally erase an entire month’s worth of gains in mere minutes. Meanwhile, it turns out that part of the news that helped kickstart the crisis is fake. According to Goldman Sachs CFO, Martin Chavez, there are no plans to shelve the Bitcoin trading desk and the news is literally, “Fake News”. In other refutations which prior to be invalidated may have helped crush Bitcoin price, Changpeng Zhao of Binance explicitly stated that there are no plans for Binance to hold an IPO. Perhaps in the week ahead financial and crypto-media outlets could spent a little more time and due diligence checking that the news we report is actually credible. Currently the cryptocurrency market capitalization stands at $204.8 billion.
1)Whether you call it consolidation, sideways trading or a stalemate, Bitcoin is not moving. They cryptocurrency has been pinned between $6,350 and $6,500 for nearly 2 days and eventually bears or bulls will have to pull the trigger and restart the war. BTC now trades below all long and short-term moving average and the most immediate resistance is at $6,650 where the 20 MA is located. As for support, BTC formed a double bottom at $6,308 and this point has protected against a drop to or below $6,000. The 20-MA is also on the verge of crossing below the 100-MA and its more than clear that bears are in full control. A record number of short positions were initiated a few days prior to BTC selling off and the road back to $7,000 and above is probably going to be rough unless the ever elusive short squeeze comes to fruition. At the moment BTC is up 0.25% and the price is $6.491. (Read More.)
2)The CFO of Goldman Sach recently sought to clarify news that the firm was abandoning its plans to open a cryptocurrency trading desk, effectively calling the rumor “fake news,” and unfounded. These rumors have been blamed by many as being the reason for the recent market drop, but there appears to be no need for such a reaction. The company still has lots of future plans related to cryptocurrencies but acknowledges that it is going to be a slow, steady path with other goals needing to be met first, like an institutional-grade custodial solution for Bitcoin. (Read More.)
- According to Bitcoin News, Winklevoss twins filed a new patent for a solution for storing digital assets. It said that the solution will introduce a new method which enables the division of a digital asset account among a “plurality of users”. Those accounts are dubbed as “multi-signature” and will require a number of users to authorize a transaction altogether, hence providing a higher level of security. Mike Novogratz, a prominent cryptocurrency investor, noted that custody from a “trusting source” is likely to catalyze the next move up in prices. (Read More.)