The past two days have been very uneventful for the world of Bitcoin. Not only that we didn’t see the breakout we had in mind, but the price also remained stagnant, with minor volatility, around the $635 mark. The buyers have, for now, stopped their pressure, which hints at a bearish pull on the market. And with the price on a steady decline since early morning, it seems that we might really see a change of trends today.
One of the few things that made the headlines this week was the news of a new Coen Brothers film that follows the Story or Ross Ulbricht – the convicted darkweb drug trafficker who will be forever linked to the “notoriety” of Bitcoins. The project will be developed by the US Fox Channel together with the famous directing duo and it is only one of the several instances of popular media warming up to Bitcoins we’ve seen in the past months.
However, what Bitcoin fans really want to know is what kind of stance the film will take. Will it speak of Ulbricht’s darkweb market the Silk Road as the illegal trafficking ring and Ulbricht as the criminal media portrait him to be, or will it also tell the story of its role in popularizing Bitcoins and free trade?
Bitcoin Down by 0.5%; Bears Returning?
After nearly a week of bullish pressure on the trading market, the concerns that buyers will take over might finally come true. With more than a week of climbing upwards, it seems that the momentum is passing, as the value has been on a downward course after reaching a two-day high of $640.44. The current value is $633.37.
And despite the increased market volume of $64,745,300, we didn’t see any positive changes since the trading winds are turning into another direction. With the current down rate and drop of -0.5%, the real question is whether the price will find support at $630 and not drop further.
Looking at our technical analysis, the current trading situation doesn’t show any promising signs. With 8 out of 12 technical indicators and all 12 moving averages being pro-sell, it seems that bearish pressure is taking over. Even the gap between the moving averages is shortening, which hints at further possible drops.
Due to the current situation, strong vigilance is advised to traders as if the buyers don’t return and the pressure continues and breaks the $635 support, the price might reverse back below the $630 mark.
European Central Bank Asks the EU to Put a Leash on Bitcoins
In yet another move against the looming dominance of Bitcoins, the European Central Bank has asked the lawmakers of the EU to impose tighter rules on the various digital currencies used in the union, including Bitcoins. The financial institution has made the request in an official publication this Tuesday, where they’ve expressed their fears of losing their authority over the monetary reserves in the EU.
For this purpose, the ECB has asked the relevant governing bodies to stop promoting digital currencies, but also stress their lack of status as a legal currency. The reason, as stated in the publication, is because if the “reliance” on digital currencies grows significantly in the future, it may in turn have a direct effect on the control of the central banks “over the supply of money”.