Bitcoin’s winning streak hits a pause

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On Tuesday 18th June, bitcoin fell by 2.87% ending the longest stretch of daily gains since July 2018. However, as Coindesk says, “The long-term outlook remains bullish with the 3-day chart calling a move to $10,000.”

The leading cryptocurrency by market value fell 2.87 percent on Tuesday, having scored 2–5 percent gains in each of the preceding six days. This is the longest stretch of gains since July 2018. In that month, its price rose for seven successive days — from July 13 to July 19 — to hit highs above $7,500.

Coindesk says, “The latest six-day winning streak saw bitcoin rise from $8,120 to $9,366, possibly due to the hype surrounding Facebook’s foray into cryptocurrencies,” adding “Binance.com’s decision to ban US customers and other factors, as discussed on Monday,” was another factor.

And, on Tuesday 18th June, Facebook launched its Libra cryptocurrency. Although it has had a very mixed reception, “many experts calling it a net positive development for bitcoin and cryptocurrencies in general,” Coindesk reports. But, it adds, “BTC suffered moderate losses, possibly because Facebook’s Libra launch was priced in over the weekend.”

Coindesk also suggests, “the long-term outlook for BTC remains bullish with technical charts calling a rise to $10,000. However, in the next 24 hours, a correction to key support near $8,700 could be seen.”

Other stats that suggest a positive outlook are “the 5- and 10-candle moving averages (MAs) that continue to trend north, indicating a bullish setup. Plus the widely followed relative strength index (RSI) has maintained the bullish bias with a bounce from the ascending trendline connecting November and January lows.”

And there are other positives. CCN reports that bitcoin is up 151% on the year-to-date, “surpassing most assets and stock indices in the likes of Nasdaq 100 and S&P 500 with ease in six-month performance.

Some analysts have suggested that the release of Libra, planned for 2020, may lead to the decline in demand for existing crypto assets such as bitcoin and ether, the native cryptocurrency of Ethereum.

However, Barry Silbert, the DCG CEO who is a crypto investor, said: “The launch of Facebook’s cryptocurrency will go down in history as the catalyst that propelled digital assets (including bitcoin) to mass global consumer adoption. Will be remembered as just as important — and transformative — as the launch of the Netscape browser. Buckle up.”

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