Bitcoin extends its losses to reach a weekly low of $8020 – the lowest level since mid-April. The decline follows weeks of gains caused by excitement that American buyers would invest in bitcoin after the US tax season came to an end.
Today’s decline comes as the crypto industry holds one of its biggest events in New York. Consensus 2018 –a three-day conference which features a wide range of cryptocurrency talks and exhibitions – recorded its biggest attendance in history with more than 4000 people paying the $2000 entry fee. Attendees included James Bullard, the President and CEO of St. Louis Fed and Jeremy Alliare, the CEO of Circle.
One of the biggest announcements at the event came from Circle who revealed plans to launch a new fiat-backed currency pegged on the dollar. The stable ‘US dollar coin’ could be a game changer in the blockchain industry helping to solve the problem of volatility. This is currently one of the biggest crypto issues because businesses are afraid to accept a currency that could fall in value within minutes. Circle is currently valued at more than $3 billion.
Bitcoin is currently trading at $8145. It is trading below the 30 and 60-day moving averages with the MACD showing signs of a shorter downside. Using the hourly chart, the pair’s RSI is at 30, headed higher. It is likely that the pair will continue moving lower but, traders need to be careful going short because a reversal might be on the horizon.
