What is the reason for the recovery of the bitcoin rate and who can put pressure on the reference cryptocurrency.
Whether you want it or not, but the world, including its financial component, experiencing a new wave of digitalization. This time the process is based on blockchain and, of course, cryptocurrencies. Despite the fact that many countries have already recognized Bitcoin as an asset, the fight against digital coins isn't just going on, but goes to the next level. As they say, if you can't kill the enemy, then beat him in the competition. This is the principle that major central banks have followed., starting to develop our own digital currencies.
Rumors have been circulating in the crypto environment for a long time about China's state cryptocurrency., USA, Sweden, etc.. d. For instance, People's Bank of China (PBoC) is fully promoting its digital currency plans, hoping to get ahead of Facebook's Libra.
According to the latest statements from sources, a dedicated team from the Central Bank's Digital Currency Research Lab is currently developing the system in a closed environment, away from the PBoC headquarters in Beijing.
However, regulators have been slow to green light coins., developed by corporations such as, for example, Facebook. For a month the markets have been in a fever on the back of news about Libra. Seems unlikely today, that the situation will change soon. This is evidenced by the fact that, that PayPal withdrew from the Libra Association.
One of the main problems of the crypto market is frequent manipulation. And recent events have confirmed this.: right before the expiration of bitcoin futures on the CME, the bitcoin rate began to fall. So it was in 70% cases. You don't need to be a financial genius, to link these two events, hence the conclusion appears, that the whales move the market as they want.
Despite the absence of any major news and recent bearish sentiment, home cryptocurrency once again decided to surprise traders, bouncing off the 100-week moving average ($7753) back to the zone $8000. In this way, we are back at two-week support level. In case of favorable development of events, we can see an increase up to $8500. However, if Bitcoin falls below the previous support level $7553, then a further drop to $7200. Much depends on the volume and willingness of the whales to return to the bull season..
