Bitcoin is still falling, FED member refers to BTC

Tuesday was one of the worst days for the whole block of cryptocurrencies. While everyone focused on Bitcoin as the most commercial virtual currency, other currencies from the bloc were losing even more. For example, Ripple dropped 26%, Bitcoin Cash 24%, IOTA was overestimated by 27%, while a huge drop was seen on Bitconnect Coin, which dived up to 91%. Technically, Bitcoin seems to have enough room for inheritance, after the bottom of the 61,8% lifting area is pierced. Let's first look at the BTC chart, and then we will focus on an interesting statement from the FED member.

Bitcoin stays below $ 11k breaking through the important support of lifting 61,8%. Source: xStation5

The technical view of the BTC chart leaves no illusions that the declines may develop further. The market is struggling with the psychological barrier on $ 10k, however, when looking at the situation of altcoins, you can expect further sales and even panic. Nevertheless, the equality of inheritance waves falling on the abolition of 78,6% seems to be a very interesting support, constituting a potential level for the correction of the straight line AB = BC. At that time, the RSI could fall to the level of sell-off at the daily interval, which would be the situation observed for the first time since July of the year 2017. This support falls around $ 8,500.

The Federal Reserve official does not see Bitcoin as a threat to the dollar

According to Neel Kashkari, a member of the Fed, Bitcoin or other currencies do not pose a major threat to the US dollar. The head of the FED from Minneapolis also added that there is no barrier to creating your own cryptocurrencies. For this reason, they remain a big question mark for the time being, although in the future they may play an even greater role in society. According to the FED representative, "there are so many alternative cryptocurrencies created daily that can be mined that if you take all of them into account, we will still have inflation because we don't know which one to trust."

The daily Bitcoin turnover is still falling, despite the last rebound

The number of daily BTC transactions has been falling in recent days. Source: Bitcoin.com

Looking at the daily number of daily transactions on Bitcoin, you can come to the conclusion that it will be rather difficult to rebound in the near future. Based on the data provided by Bitcoin.com, the daily number of transactions (14-day average) has fallen over the last few days suggesting that interest in this cryptocurrency is falling.

Author: Daniel Schittek, Analyst at XTB