Bitcoin price has been slowly following a downward trajectory after reaching its 2019 peak of $12593 in July. As of writing, Bitcoin, the big brother of all cryptocurrencies is trading at $9888. It is down about 3.3% for the day sending a negative sentiment to other top cryptos. Bitcoin’s current market capitalization is at $177 billion and its dominance level at 67.4%.
The chart reading clearly suggests an ongoing downtrend in price since mid-2019. The RSI or the Relative Strength Indicator, however, suggest that a rebound in price could be just around the corner.
RSI level helps analyze the overbought or underbought scenario of the asset. If the level crosses 70, the currency would be overbought and we could soon expect a drop-down in price. Similarly, a level below 30 is an oversold indicator, suggesting a price pullback.
A breakthrough from the downtrend line could lead to a sharp rise in price, but resistance at the yearly high is probable. However, further continuing with the downtrend line would mean more pessimism for the crypto space and a delayed price revival.
Among other famous cryptos, Ethereum is also down for 2.8% trading at $208. Ripple (XRP), Bitcoin Cash, and Litecoin were also in the red territory dropping 4%, 4.2%, and 1.8% respectively for the day.
Among the top performers for the day were Metaverse ETP scaling 14.6%, Stellar and Nash Exchange increasing 13.8% and 12.5% respectively.
Looking at a few top news affecting the crypto space, Federal Reserve’s another slash to interest rates could likely prove beneficial for Bitcoin in the longer run. Lower interest rates in the US makes the US dollar cheaper for investors abroad. Thus, dollar-price Bitcoin could receive a boost in buying. The benefit was not evident in a day with Bitcoin plummeting about 3% today. However further rate cuts could buoy the dollar-based cryptos.
On the other hand, there is an Isreali cybersecurity startup, GK8 that developed the first-ever offline system for trading cryptocurrencies. GK8 raised 4 million in funding from a venture arm of large Isreali banks called ‘Discount Capital’. GK8’s CEO Lior Lamesh explained this technology as ‘ledger agnostic’ indicating that it can be useful for Bitcoin as well as other cryptos. The technology would record transactions in an offline mode and is already up and running on digital platform eToro.
UAE has also taken a leap in blockchain technology. As a part of its Emirates Blockchain Strategy 2021, a blockchain database for assessing information on medical professionals will be made available. UAE also asserted that it would want to transition 50% of its government system to blockchain by 2021. This would likely ensure transparency and enhanced governance. Not many countries have been proactively seeking blockchain incorporation into their governance system, but distributed ledger technology surely has its pros.