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Bitcoin Price Drops as BlackRock Fails to Provide Update

October 17, 2018 at 11:50 by Arathur Stephen

Bitcoin price is consolidating inside a symmetrical triangle pattern on the short term as seen in the chart below while traders are indecisive which direction to take. Nevertheless, it appears that the bears are pulling the price downwards.

BlackRock Fails to Provide Update

BlackRock published its much-anticipated third-quarter earnings yesterday. Traders also expected that the global asset manager would give an update regarding its earlier interest in cryptocurrencies, nevertheless, the company did not comment about the issue at a conference call.

Analysts also did not inquire from the company about the venture but have assumed that BlackRock’s interest in the digital asset industry is off the table. Traders believe that the company would have mentioned it yesterday if it had set up a team for crypto.

On the bright side, Fidelity is making it easier for institutional investors to invest in cryptos as it has announced that it was setting up a trading platform. The firm said in an announcement that Fidelity Digital Assets Services will facilitate crypto transactions. The CEO was quoted as saying:

Our goal is to make digitally native assets, such as Bitcoin, more accessible to investors. We expect to continue investing and experimenting, over the long-term, with ways to make this emerging asset class easier for our clients to understand and use.

BlackRock will mostly offer custodial services. At the moment, firms like Coinbase and Gemini provide such services. At the same time, other large companies like Goldman Sachs, Northern Trust, and Nomura have also shown interest and are planning to explore the crypto industry. The entry of Fidelity into the crypto industry is significant as it has administered assets worth more than $7.2 trillion.

Bitcoin Fundamental Highlights

At present, Bitcoin is moving to the downside with the volume of $271.81 million in past 24 trading hours. Bitcoin price is trading near $6,550 zone as at 11:00 GMT. The price of the virtual currency has moved by $10.86 (0.1661%) with a total volume of over $3.07 billion in the past 1 week. On Monday, the price surged above the $7,000 mark.

Nevertheless, the US government have shown interest in putting Ripple’s centralized XRP coin against Bitcoin in a bid to tackle China’s crypto dominance. The digital coin has been gaining popularity among traders and institutional investors, thus, the US has led the Trump government to explore its potential.

Moreover, the recent rally in Bitcoin price has been attributed to the selloff in USDT, as well as the launch of Fidelity’s trading platform for Bitcoin and Ethereum. These developments could bring in stronger volumes and expand activities in the crypto market and potentially increase the prices of Bitcoin and altcoins.

BTCUSD Technical Forecast

Bitcoin price dropped recently below the short-term rising trendline and seems to be in the middle. The price could resume the downward slide to the Fibonacci extension levels if the broken support holds as resistance.

The 50 percent Fibonacci retracement level lines up with support at the $6,100 zone while the 61.8 percent level is nearer to the swing low and $6,000 major support handle. Nevertheless, the stronger bearish pressure could drag the price down to the 78.6% extension below $5,900 mark in the short-term.

The 100 Small Moving Average (SMA) line is below the longer-term 200 SMA line, indicating that the path of least resistance is to the downside. That is to say, the bearish breakout is more likely to gain traction than to reverse. Currently, these MAs are holding as dynamic inflection points near the broken trend line.

Stochastic RSI 14 clearly indicates that sellers are in charge, however, the oscillator appears to be bottoming out without reaching oversold levels. This shows that buyers are eager to gain control and push the price back up, most possibly to the rally higher around $6,800 and above.

Relative Strenght Index (RSI) is moving close to overbought levels which also indicate that Bitcoin price might experience selling pressure in the coming days.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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