Bitcoin has been steadily dropping in price we have seen it reach from $19000 to just blow the $6000 mark last night. Its nothing new that Bitcoin is on a correction but the International Media's reporting and Governmental attemps to regulate aren't exactly helping the price right now.
What do the Banks have to say ?
Top Banks across the World like Bank of America , JP Morgan, Citigroup and Lloyds Banking Group have all stated that they will be blocking all Cryptocurrency purchases using Credit Cards after the main digital currency BitCoin has lost more than half its value in just two months.
A statement from Lloyds Banking Group says, " decision was made to “protect customers” from making unaffordable losses on bitcoin, the company’s spokesman was quoted by the Telegraph." One can also assume that the banks are also protecting themselves as if their customers experience losses in the crypto market using their credit cards who is left with the debt if they can't pay it off ?
Coinbase, a US Cryptocurrency exchange has stated it still accepts direct bank wire transfers seeing as the banks have banned credit card purchases for the moment.
It is safe to assume the current volatility has the banks concerned , but will this news cause any movement with the BTC price at the moment ?
Bitcoin Charts
Weekly
The weekly chart shows us the price has come back down to the $6000 support area and has started to slowly move upwards since which can be seen more on the daily chart.
Daily
It almost appears as we are getting support from the upward trend line and the RSI shows over sold which is a good buy sign as the saying goes buy on support and sell on resistance, but can we go lower the possibility still remains.
Hourly
Closer inspection of the hourly chart shows the price taking support on the upward trend line and it can possibly break out of the current down trend but is it a breakout or a fakeout ? With not much new developments to push the price up I'm more leaning to the side of Fakeout as this can be a false bottom with the true bottom being in the $5000 range as most of the crypto world speculates.
So whats the best thing you can do in this market ? Either buy on discount or hold on for the ride as its going to be a long and rough one .
Feel free to share your thoughts and views below.
