Bitcoin and altcoins suffered a sharp drop last Friday, after the words of Federal Reserve Chair Powell’s anti-crypto comments. During the weekend, altcoins recovered and created a rally that drove their price above the values before the drop. Bitcoin’s recovery though was shortlived and currently moves below $10,300. The current Market Cap is $264.543 billion, and Bitcoin dominance moved slightly below 70%.
What is happening?
Fed Chairman Jerome Powell does not think the FED will release issue a digital dollar any time soon. Speaking at a forum hosted by the Swiss Institute of International Studies in Zurich, he answered a question about a FED backed digital currency said,
It’s not something that we are actively considering. For us, it raises significant issues that we would want to see resolved.” – FED Chairman, Powell.
Highlight: “We are following the whole question of digital currencies,” says Fed Chair Jerome Powell. “It’s not something that we are actively considering. For us, it raises significant issues that we would want to see resolved.”https://t.co/xpAujlCWBd pic.twitter.com/n5M5XDU5AZ
— Yahoo Finance (@YahooFinance) September 6, 2019
The other major event last Friday was Bakkt’s announcement that its bitcoin Warehouse services opening.
The Bakkt Warehouse opens today
It is regulated by the New York State Department of Financial Services (NYDFS) as a Limited Purpose Trust Company, providing customers with a Qualified Custodian of bitcoin
— Bakkt (@Bakkt) September 6, 2019
Some commentaries assign the combination of both news the cause for the drop of bitcoin and altcoins last Friday.
Bitcoin is creating a king of H&S pattern whose neck is breaking. The price moved sharply down after touching the descending trendline. The ascending trendline (blue) is still untouched, and the price is in a former consolidation area. MACD and Stoch. are bearish at the moment. On our first scenario, this is a fake move before continue up. That could be resolved today. On the other scenario, If Bitcoin’s selling volume grows and breaks the ascending trendline, it will revisit the last bottom at $9,400.
Ripple is moving in a horizontal channel. The price was rejected by the 0.26588 resistance and now seems headed to visit the $0.25 again. MACD and Stoch, are in line with this scenario.
Ethereum also moves in a kind of horizontal channel, as the price has been rejected from $183 for the second time. MACD and Stochastics point to a new movement to the lower side of this channel.
Same conclusions apply to Litecoin that seems to currently mimic Ethereum’s patterns.
Other coins to pay attention to:
EOS is moving strong, although today is retracing. The price action of the last two days seems to indicate more upward movements.
DASH is currently touching resistances, but the recent 8H price action means strength is coming to this asset. Not to buy today but worth stalking and purchase on a retracement.