Bitcoin price has taken a left turn today, with a potentially significant slip to the current daily low of USD 7,820 happening just about 10 hours ago on the brink of Western European trading time at 7:30 am Brussels (6:30 UTC, CoinDesk).
There has been a slight recovery, as can be expected after such a drop, to current levels just above USD 7,900, but it does not look too hopeful for a Friday run back above USD 8,000, unless bullish traders wake up and turn things around before the weekend descends.
And thus, from a weekend high that almost touched USD 230 billion, the total crypto market capitalization has declined by 3.5% since the last week. Bitcoin is defiantly trying to hold on to USD 8,000 support but all signs point towards further and imminent losses.
With all the bearish sentiment pervading more and more, especially on social media, Bitcoin analysts are saying that we could now be close to bottoming out in 2019. We have also brought it up before a couple of times in BitcoinNews.com but we have to bring out once more one of crypto’s most popular contrary indicator resurfaces.
The so-called death cross is now appearing once more, using the 50-day USD moving average (MA) which is falling like a stone, potentially dropping below the 200-day MA next week. Should this happen, the death cross would be the first such crossover event to happen since March 2018, an 18-month gap.
BITCOIN DEATH CROSS. pic.twitter.com/83w3LKGHug
— emmm (@emmmtrade) October 16, 2019
Historically, if confirmed, this data represents a price bottom for Bitcoin. In typical technical analysis, a death cross indicates a long-term bear market, however, so there are plenty of traders who take this as a strong sell signal. But patterns from the past show that for Bitcoin, the death cross is, in fact, a lagging indicator and sellers get caught out, liquidating positions just as price bottoms out.
All this does not really play out well though in the big picture, with more and more entities seeing and understanding not only the potential for crypto as new money, but for crypto as an entirely new system that can displace the old and broken one.
Forbes today reports that the Premier of Bermuda, Edward David Burt, has labelled crypto as “a great equalizer“, while saying that every nation must make fintech development their strategic imperative.
To those in the know, the comment comes of little surprise, actually, given that Burt, the youngest person to ever lead Bermuda, was a former startup founder, programmer and entrepreneur. He is a vocal advocate for crypto, believing that it can help create more equitable societies through its “premise of decentralization”. He uses the example of how micropayment abilities can even rebirth the structure of current business technology, by removing the monopolies from tech giants in controlling the majority of the value. He explains:
“Facebook and Google make money because they have your data, but they don’t pay for access to your data. However, when you talk about the ability to have infinitesimally-sized pieces of value so someone can pay you […] for using your data … […] the promise of cryptocurrency is to actually take power away from those large companies.”
Bermuda will surely be gaining a lot more friends from the decentralized tech world, and the anti-corporates, when he further criticized Facebook’s Libra project, whom he “doesn’t particularly trust”. He did, however, advise for governments to engage more to find common solutions for their people when it comes to new, democratic tools for financial activities:
“Whether it’s Libra, when we talk about ICOs and different things, the fact is that it’s no different from when stocks and bonds were startup financial services.”
He urged governments and states to stop fearing loss of control over money, or that that loss of control would pose untenable risks to the economy and national security. He warns that with regards to concerns over this, it was a future that could not be escaped: “It’s going to happen. The Internet can’t be shut off.”
The new comments come on the back of a big week for stablecoins, with US-based tech and payments company Circle announcing that Bermuda is the first state to accept its stablecoin USD Coin (USDC) as legal tender for tax payments.
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