Yesterday price action on the Bitcoin but it recovered at the end of the session to attempt another assault to the $12,000 barrier, which failed marginally. Today’s price action seems to imitate what happened yesterday.
Top altcoins were mostly bearish, following the Bitcoin lead. The notable exception was Binance Coin (+3.3%) and Tezos (8.7%). The crypto market capitalisation descended to 306.076 billion from 308.594 billion (3.26%). Bitcoin dominance is currently 69.2%
The current heat map of the crypto sector is as follows:
What is Happening?
Rhode Island is the last state to create specific legislation for cryptos. According to a report starting January 2020, Rode Island will regulate money transmission activities, which will include cryptocurrencies. in the bill, cryptocurrencies are defined as
a digital representation of value that is used as a medium of exchange, unit of account, or store of value, and is not legal tender, whether or not denominated in legal tender.
US Federal Reserve announced it would develop “a new round-the-clock real-time payment and settlement service to support faster payments”.
Everyone deserves the same ability to make and receive payments immediately and securely, and every bank deserves the same opportunity to offer that service to its community.
Although smaller banks endorsed the project, which would allow them access to real-time money transactions, for larger banks, this project is competing against their privately established payment system. Fed Governor Lael Brainard said this new Fed-run service would ensure banks of all sizes have access to instant monetary transactions and enhance the security of the financial system. In a tweet, Dilip Rao, Ripples Global head, praises the Fed decision, sparking suspicions that the Federal Reserve may partner-up with Ripple.
— Dilip Rao (@diliprao) August 5, 2019
The British Government is requesting information to cryptocurrency exchanges over user identity data and transaction histories. The UK Tax Authority is expected to pursue unpaid taxes from the past four years. Source: cryptobriefing.com.
Seoul will launch a reward system for citizens participating in various public services. Seoul will use the current government payments network, the QR-Code-enabled ZeroPay. The coins could be used to acquire goods and services via smartphone. Source: beincrypto.com.
Bitcoin had round trip price action yesterday. The price started with a rejection of the $12,000 barrier and ended with another one. Today the price is descending from that level and is currently sitting at $11,800. The MACD still points to a downward pressure while the Stochastics signals a turnaround. Therefore we do not have any valid clue from these indicators. The Bollinger bands indicate a horizontal or sideways action.
Ripple’s bears have used the recent bullish candlestick to add short positions. We see that the upward movement was on a tiny volume while the red volume bars are much larger. The price has crossed the 0.305 support and is hinting to more downward movement.
Ethereum is correcting about 50% of its previous upward movement. The Stochastics are near oversold condition, and the MACD is bearish, while the price moves below the -1 Bollinger line that is bearish. From the volume bars, we see that there is no buying pressure. Sellers are commanding. We need to see how the current candle ends because, at a 50% correction, a reversal might happen.
Litecoin is moving in a triangular pattern where the price cannot make lower lows nor higher highs. The MACD is curving to make a transition to bullish, while the Stochastics is already out of the oversold zone. The price is still moving below the -1 Bollinger line; therefore, we need to have evidence the buyers have come back. The price above 90.7 again would be enough.
Binance is moving in a impulse, but currently is finding resistance at the levels of its latest tops. Its is and the price above the +1 suggests more upward movement after the consolidation. The recent volume bars show buying pressure as well.