Over the past week, we have seen the price of Bitcoin run over $7,400 but sharply retrace under seven thousand dollars. Above all, we saw the MACD histogram, which is one of the Bitcoins price indicators show bullish signs for the first time since the beginning of 2018. In fact, the MACD histogram shows a level below zero, which indicates a bull market for the first time since January 2018! So what happened yesterday, that caused this strong Bearish reversal? After all, many Bitcoin bulls were getting excited for a BTC run over ten thousand dollars, or at least above the $8,500 July 2018 high.
Indeed, the Goldman Sachs Firm came out with the news that says they are dropping its plan to open a trading desk for cryptocurrencies. However, with the MACD histogram showing bullish levels and the lack of interest of Bitcoin bears on the future markets, why would Bitcoin crash now? First of all, Bitcoin is one of the most volatile investments anyone can make. Furthermore, this cryptocurrency has a history of big up and downs. Was the MACD histogram that shows bullish signs correct? Perhaps it was but that may have been a false indicator. Also, with the news that Goldman Sachs drops its plan to open a trading desk for cryptocurrencies, many investors may have sold their positions, thinking the price of bitcoins is headed back down to the $6,000 level or lower? After all, the BTC price went down as low as $6,938.10 according to ArmyOfBitcoin.com price index.
Goldman Sachs has been keen on BTC as well as other cryptocurrencies. Above all, they have allegedly made statements this year that they were thinking of adding BTC and other altcoins to their trading desk. As a result, this may have added confidence in the BTC market, making the price increase. However, in our opinion, we feel that the announcement they are not interested scared off some mainstream investors and they took their positions off the table, causing the five percent drop today. Furthermore, Goldman Sachs would not confirm their statement according to the official CNBC website.
Recently, CNBC published an article about Goldman Sachs that said they are still considering offering Bitcoin. More specifically, according to CNBC, Goldman Sachs goes on record to say “In response to client interest in various digital products, we are exploring how best to serve them in the space. At this point, we have not reached a conclusion on the scope of our digital asset offering,” Goldman Sachs said in a statement.
Shortly after that, Brian Kelly, who is the founder and the CEO of crypto hedge fund BKCM made a statement. According to the official CNBC website, Brian Kelly says “They were not a part of the ecosystem yet, but to the extent that they represent the institutional herd, this is a negative,”
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Indeed, there are always cryptocurrencies that surge up and down on a daily basis. However, according to the ArmyOfBitcoin.com’s price index, Bitcoin has shown a fifty-five percent dominance over the cryptocurrency market. Furthermore, this is higher than it was in August 2018. That said, the two biggest runners in the past day have been Bitcoin Gold ($BCD) and Karatgold Coin, which trades under the symbol $KBC. Furthermore, Karatgold Coin ($KBC.X) surges over one hundred thirty-one percent, sending the price to $0.017296. While this was today’s largest cryptocurrency run, the price of Bitcoin Gold ($BCD) increases over one hundred twenty-one percent. Currency, the price of Bitcoin Gold ($BCD) sits at two dollars and ninety-six cents.
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