Technical gauge is showing dramatic price swings for the digital token may be primed for a return: the difference between Bitcoin’s upper and lower band in the Trading Envelope indicator is at its narrowest since mid-September.
In addition, Bitcoin closed below its opening price in six of the last seven trading sessions. The last time it exhibited that pattern — in mid-September — it lost about 20% in one week.
Bitcoin has been hovering around the $7,800 level over the past month amid a surge of negative news that’s weighed on the rest of the digital currencies market as well. High-profile companies, including
Visa Inc. and Mastercard Inc., have withdrawn their support for Facebook Inc.’s plan to launch a global cryptocurrency called Libra .“As it becomes more and more obvious that the Libra thing is not going to take off — it’s going to be a long time before it becomes an important part of anything
“Brainard’s comments taken as a whole reflect an extremely cautious approach to stable coins and the notion of central bank-sponsored online currencies,” Nicholas Colas, co-founder of Data Trek Research, wrote in a note last week. “That makes sense: The Federal Reserve backs the world’s reserve currency and has little incentive to put that title at risk with untested technologies.”
Bitcoin has dropped about 2% over the last week. Peer coins, including Litecoin and Ether, are down 2.8% and 5%, respectively.