Expect Some Lower Lows Before the Next Bounce

Two days ago, I outlined a potential BTC-USD price breakdown due the broken hypodermic trendline.  Since then, the price has dropped nearly $7,000 and is showing signs of further downward continuation.  Let’s take a look at the chart from the last BTC-USD market analysis: Figure 1:  BTC-USD, 4-Hour Candles, Trend Prior to Breakdown As you can see, the price was holding on by a thread near the red, hypodermic trendline.  Once it managed to break this trend, the price immediately and aggressively dropped.  Thus, the market signaled the end of…

Fedcoin Could Be Coming Soon, But Would It Really Challenge Bitcoin?

The idea of “Fedcoin,” a cryptocurrency sponsored by the U.S. government and managed by the Federal Reserve, has been around for quite some time. “Imagine that the Fed, as the core developer, makes available an open-source Bitcoin-like protocol (suitably modified) called Fedcoin,” a Federal Reserve VP speculated already in 2015. The idea gained traction also in Europe in connection with the financial crisis in Greece, and was notably discussed in a “Eurocoin” context by former Greek Minister of Finance Yanis Varoufakis. Earlier this year, Nobel Prize–winning economist Joseph Stiglitz said he believes “very strongly” that…

Bitcoin Drops, But Investors Are Encouraged to Hold

Bitcoin, along with many of the other cryptocurrencies, has witnessed a dramatic price drop Friday, with Bitcoin losing almost 50% at its lowest compared to the $20,000 high it had achieved at the beginning of the week. Currently, the coin’s price has readjusted to $14,860 since falling, so already it looks to be in a recovery phase – and this is what many analysts are focusing on and using to keep the calm among the crypto investors. Many analysts are encouraging investors, especially new-to-the-block investors, not to panic about the…