Bitcoin has in the last 24 hours hit a new five-month low. This is as the asset dropped below $7,500. For some analysts, this was predictable as the asset has failed to break above key resistances. Inevitably, Bitcoin would have to trace back before gaining enough momentum to break above these resistances. This retracement, however, carries considerable risk as it could trigger a massive sell-off with many investors panicking. The drop comes in light of fresh attacks on Facebook’s Libra launch. Mark Zuckerberg has been this week grilled by the U.S Congress, many of whom have been critical of the project.
The latest Bitcoin drop has seen the asset come close to crossing the death cross. This is a bearish signal that was last spotted in March 2018. It consecutively saw Bitcoin drop to reach a year low of $3,000 by the end of 2018. If Bitcoin crosses the death cross, we could see a further drop to $6,000 before we see a recovery above. It is, however, more likely that the bulls will defend the $7,500 zone and quickly push prices back above $8,000.
Latest On Facebook’s Libra Launch
The latest drop has reportedly been triggered by the fresh attacks on Libra. In the last few days, Zuckerberg appeared in front of the U.S Congress to defend what his company is up to.
Much of the debate revolved around having Libra conform to global financial regulations. While the basis of the project is to free millions from the global financial system, lawmakers believe that it could also see bad actors use it to circumnavigate regulations. There is also the question of how effective Facebook will be in protecting personal data. Although Zuckerberg was convincing, the management of personal data by Facebook ensured that he could not make enough of a case to convince many.
One note caught my attention, stated by top republican on the table, Representative Patrick McHenry.
“…if history has taught us anything, it’s better to be on the side of American innovation”
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