Bloomberg: Bitcoin faces an inflection point, and bearish signs are frequent

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Bitcoin may be closer to the turning point because cryptocurrencies are undergoing more rigorous scrutiny and bearish signals.

Bitcoin may be closer to a turning point as cryptocurrencies struggle with greater scrutiny and bearish votes pile up.

Bitcoin is the world's largest digital currency, and some of its technical indicators have indicated that it will fall further.

Some technical indicators for the world's largest digital coin have been pointing to further losses.

It has fallen below the 50-day moving average support, which may signal the end of this wave of near-$14,000 at the end of June.

It has broken below its 50-day moving average support, which could signal the end of a recent uptrend that brought it close to $14,000 at the end of June.

Bitcoin is also below the lower limit of the GTI Vera Band indicator, which measures the up and down trend.

As of 12:16 pm in New York, the bitcoin transaction price was approximately $9,575. The GTI Vera Band indicator measures the up and down trend (green and red), while Bitcoin is also below the lower limit of the indicator.

(Translator's Note: GTI is the abbreviation of Global Trading Indicators, please visit www.gtindicators.com for more information)

Bitcoin has also fallen under the lower limit of the GTI Vera Band indicator, which measures up and down trends, and is trading around $9,575 as of 12:16 pm in New York.

Bitcoin "is standing at a key technical juncture," Matt Male, a stock strategist at Miller Tabak + Co., wrote in a recent report that once we step out of the summer recess of Congress and enter the 2020 election cycle, then A more rigorous regulatory review "will become a more prominent issue (more prominent)."

Bitcoin “stands at a key technical juncture,” Matt Maley , equity strategist at Miller Tabak + Co. , wrote in a recent note. Greater regulatory scrutiny “will become an even more prominent issue (much more prominent) once we move past the summer Recess for Congress and into the meat of the 2020 election cycle."

A series of negative developments led to a lower cryptocurrency this month, including Libra, a stable currency that Facebook plans to launch.

A spate of negative developments have sent cryptocurrencies lower this month, including fallout from Facebook Inc.'s plans to launch its own stablecoin called Libra.

Legislators slammed David Marcus, the leader of Facebook's blockchain team, in a series of congressional testimonies earlier this month, citing trust and privacy issues. The cryptocurrency release time of social media giants is out of date: The US Department of Justice is planning to conduct regulatory reviews of large technology platforms that are becoming too large and powerful.

Lawmakers lambasted David Marcus, who leads the company's blockchain team, during back-to-back Congressional testimonies earlier this month, citing trust and privacy issues, among other things. The social media giant's crypto launch comes at an inopportune time: the US Justice Department Award plans to scrutinize big tech platforms following criticism that some companies have become too big and too powerful.

“This is a new product. It is very different from most new products,” said JJ Kinahan, chief market strategist at TD Ameritrade. “Everyone, including regulators, is trying to figure out the best way to protect people and keep something viable, but don’t let it grow wildly.”

"It's a new product. It's much different from most new products," said JJ Kinahan, the chief market strategist at TD Ameritrade. "Everybody, including regulators, are trying to figure out the best way to roll this out to protect people, keep It something that's viable but keep it from being the Wild West."

Last week, the Internal Revenue Service warned more than 10,000 cryptocurrency holders who might be punished for taxation on investments. Bitcoin fell about 20% this month. Similar cryptocurrencies have also fallen back – Litecoin (LTC) fell more than 25% during the same period, while Ethereum (ETH) fell nearly 32%.

And last week, the Internal Revenue Service warned more than 10,000 cryptocurrency holders that they may be subject to penalties for skirting taxes on their investments. Bitcoin has fallen about 20% this month. Peer coins have also retreated — Litecoin has dropped more than 25 % in the same period, while Ether is down close to 32%.

The Senate Banking Committee will hold a hearing on Tuesday entitled "Review of the regulatory framework for digital currency and blockchain."

A Senate banking committee will hold a hearing Tuesday titled “Examining Regulatory Frameworks for Digital Currencies and Blockchain.”

Original title: Bitcoin Near Turning Point as Bearish Signs Abound After Rally

Source: Bloomberg

Author: Vildana Hajric

Time: July 30, 2019 GMT+8 12:23

Translation: Sharing Finance NEO

Links: https://www.bloomberg.com/news/articles/2019-07-29/bitcoin-near-turning-point-as-bearish-signs-abound-after-rally