Instead, the normally-volatile digital asset held steady with some unusually-dull sideways movement laying the ground for a measured comeback. Cryptocurrency took a battering across the board last month, with high-profile naysayers unleashing bruising broadsides at every opportunity. US President Donald Trump fired off the first volley, branding bitcoin as being based on nothing more than “thin air”. He was quickly followed by a raft of other leading figures keen to twist the knife.
A ludicrous miscalculation was next up which saw $5billion of tether tokens printed only for the Bitfinex chief technical officer Paolo Ardoino to suddenly announce half an hour later that the $5bn had been an unfortunate “mis-click”.
That jaw-dropping error was followed by US Treasury Secretary Steven Mnuchin turning his ire toward Facebook’s Libra project which he branded a “national security issue”.
It was almost a killer blow and saw BTC plummet from nearly grasping the underside of $14,000 to pull back under the psychological barrier of $10,000 where, until this week, it had languished.
With a rise of more than 10 percent in three days, the volume is beginning to pile back into the market – a move that will certainly bring some confidence back to those still licking the wounds inflicted throughout a tumultuous July.
It may be a coincidence, but the US Federal Reserve’s first rate cut for many years appears to be the catalyst for a sharp rise in volume
The signals to watch out, for now, would be a steady climb for $11k over the weekend – especially as it is backed up by more than $10bn entering the market this week.
If this recovery can sustain a position above $10,500 with real conviction then we might see, by Monday, a healthy bitcoin preparing to fulfil more of its perceived destiny over 2019.
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