Bitcoin Continues To Consolidate
Shain Vernier • 1 min read
For weeks, Bitcoin (BTC) hasn’t been able to shake the $10,000 psychological level. Price has oscillated above and below this area, with neither bidders nor sellers gaining the upper hand. Unless we see a primary cryptocurrency market driver hit the newswires, BTC appears content to consolidate going into September.
Since Facebook’s Libra announcement in June, the cryptosphere has been quiet. However, Libra appears ready to make headlines in the near future. Reports are circling that Facebook has recently hired a firm with ties to Coinbase as the head of lobbying operations in Washington D.C. While the move is somewhat routine, the hiring of FS Vector illustrates that Facebook is very serious about gaining governmental approval for Libra.
In total, Facebook has spent almost $8 million this year on lobbying efforts toward Libra. Should these investments bear fruit and Libra be greenlit, then Bitcoin, as well as the entire asset class, stand to reap the rewards.
Bitcoin In Heavy Consolidation Near $10,000
The daily chart for August Bitcoin futures certainly has the look of an indecisive market. Daily ranges are tightening in the vicinity of $10K. It appears as though crypto traders are waiting for that “blockbuster” news item before committing to BTC one way or the other.
Overview: For the time being, Bitcoin is in a holding pattern. This is not all too uncommon, as BTC has a tendency to show activity during the initial stages of the month. Perhaps the action will pick up as September gets underway next week.
From a macro perspective, a bullish bias remains warranted for BTC. Values remain above $10K, which is the key technical level in this market. Until we see a major washout to at least the $8000 handle, the long side of Bitcoin is the dog with the least fleas.