After having a rollicking rally during the first half of the year, Bitcoin (BTC) has had a forgettable time in the month of July, and the reasons behind the troubles are manifold. The announcement from Facebook (NASDAQ:FB) about its very own cryptocurrency Libra may have initially been thought of as a welcome addition to the crypto sphere, but in a matter of time, it turned into a troublesome entity for Bitcoin.
Libra has been panned by some of the most powerful people in the world, including the United States President, Donald Trump, and the head of the United States Federal Reserve, Jerome Powell. That had a considerable effect on the price of Bitcoin as it continued to drop and then recover, but the recovery never fully took on the same momentum that it enjoyed around four weeks ago.
BTC Falls to Near $9,500
Today, Bitcoin declined further after the concerns about Libra were expressed by regulatory authorities in Switzerland, the world’s preeminent banking hub. The Swiss Federal Data Protection and Information Commissioner, which oversees the various issues pertaining to digital currencies, had contacted Facebook with regards to specifics about Libra. However, neither the social media giant itself, nor its subsidiary in charge of Libra, have responded to requests from the Swiss regulatory body. The Geneva-based body released a statement claiming that it had contacted Facebook with regards to the extent to which a person’s personal information is going to be processed in case they buy Libra. It says it has yet to receive any reply from Facebook.
This is another red flag for Libra and has affected Bitcoin once again, which declined considerably after the news broke. The price of Bitcoin collapsed by as much as 3.5% as it hit $9,613, which is its lowest level this week so far. The news affected the crypto sphere at large and had resulted in declines for both XRP and Ethereum (ETH) as well.
Going forward, $9,510 and $9,010 could act as good short-term supports. However, if Bitcoin falls below $9,000 on good volume, then based on the technical chart, $8,600 to $8,100 cannot be ruled out.
Considering the continuous sell-off since late June, it is better to follow a wait and watch approach if you are a trader. On the brighter side, Bitcoin might trigger a new breakout above $10,300 and $10,750.
From a trader’s point of view, $9,010 and $10,750 could be range-bound trading.
Featured image: DepositPhotos © AntonMatyukha