Five days ago, bitcoin was trading at about $ 13,000, but last night the price of the leading cryptocurrency dropped to $ 10,000 and for the first time since February 18, tested the 50-day moving average, CoinDesk analyst Omkar Godboul draws attention .
The head of the Facebook cryptocurrency project, David Markus, on Tuesday will address the US Senate Committee on Banking, Housing and Urban Affairs, and on Wednesday – before the House Services Committee on Financial Services. Upcoming events may put pressure on the market, the analyst believes, pointing to historical data: Bitcoin traditionally falls before the congressional hearings about cryptocurrencies and grows when their result is positive.
So, in the middle of last year, Bitcoin fell from $ 6,820 to $ 6,070 within 5 days before the hearing of the House Financial Services Committee, where cryptocurrencies were discussed as a new form of money, and rose to $ 8,500 when skeptics were not justified.
Similarly, bitcoin declined in February 2018, when the heads of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) spoke to the Banking Committee.
Libra’s cryptocurrency from Facebook , being a non-governmental payment mechanism, is seen as a positive signal for Bitcoin, the analyst writes, adding:
“It is hardly surprising that Bitcoin was pulled down before the hearings regarding Libra.”
Earlier, Fed Chairman Jerome Powell has joined calls to suspend the development of Libra; US President Donald Trump also criticized cryptocurrency.
Bitcoin can rise well above its local maximum of about $ 13,800 until the end of the third quarter, if the hearing is positive, Godboul said. According to him, the short-term outlook remains positive, while the cryptocurrency is trading above the minimum recorded on July 2 at $ 9,614.
A close below $ 9,614 today will lift a bullish pattern with a higher high and confirm a bearish reversal.
This can happen because a bearish deviation of the relative strength index (RSI) is observed on the three-day chart. The indicator went beyond the upward triangle, marking the end of the rally from the lows of December.
Long top wicks on two of the last three candles and a RSI bearish deviation indicate a bull depletion.
The schedule speaks about the possibility of falling to $ 9,097 (maximum on May 30), if the result of the hearings is no more positive than expected. Otherwise, Bitcoin can rise above $ 13,800 and continue the rally.
Bitcoin has risen from a low of about $ 9,850 to $ 10,700. However, a bearish pattern with a lower high is still in the game. If it is canceled by lifting above $ 10,732, the price can reach $ 11,200 within the next 24 hours.
Publication date 07/16/2019
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