Bitcoin Rally Falters Again, IOTA and ETH Market Analysis Sep. 7
BTC
The three-week rally in Bitcoin fell apart on Wednesday and we now see the market trading under $6,500 after crashing through the 50 moving average and the three-week uptrend support. Bitcoin now threatens to test the $6,000 level once more, which proved to be stubborn resistance in recent months.
One of the initial catalysts for the sell-off was a false rumour that Wall Street investment bank, Goldman Sachs was planning to postpone its earlier plans for a cryptocurrency trading desk. Business Insider stated that the bank was pulling back whilst the regulatory framework remained unclear. The CFO of Goldman later denied the release, terming it fake news,
It wasn’t like we announced anything or that anything had changed for us… I never thought I’d hear myself actually use this term, but I’d really have to describe that as fake news.
However, the rebuttal did nothing for the price and we have seen two weak days across the cryptocurrency space.
I noted the planned meeting of EU Finance Ministers, which was scheduled for today, Friday, in Vienna. The group were due to discuss the cryptocurrency market and try to get closer to an agreement on regulation. It’s maybe no coincidence that a Belgium-based think tank released their own recommendations to the European Union this week, recommending that they adopt a common set of rules across all nations in the union for cryptocurrency and Initial Coin Offerings.
To summarize the report, the think tank proposed that Bitcoin cannot be fully regulated due to its decentralized nature, however the entities that handle the currencies could. This is a big decision for governments because they will want to protect their own money creation systems, however, strict regulation could see them fall behind other regions.
ETH
In my Wednesday article I noted that Ethereum was weak again and had failed at the $300 level over the last few weeks and I warned about the potential for a sell-off stating,
Ethereum on the weekly chart is in a danger zone of support and if we don’t see a rally back through $300 this week, then a bearish weekly close could see the price move towards the $200 level.
The price of Ethereum saw a brisk move lower and is now trading near the $225 level. Ethereum’s fall was made worse by the comments of founder Vitalik Buterin, who agreed with a commentator that the price of Ethereum could collapse without further developments in the network…
Full article here.
