Bitcoin’s Response to Facebook’s Libra Unveiling and Potential Price Movement
The unveiling of Facebook’s Libra cryptocurrency has failed to give Bitcoin (BTC) the boost it was hoping for. Despite the anticipation surrounding the announcement, BTC is struggling to gain traction and is currently trading at $9,214, down 2.8 percent from its recent high.
Experts are calling Facebook’s move into cryptocurrency the most bullish external tailwind for Bitcoin in 2019/2020. However, the lackluster response from BTC following the news suggests that the market may have already priced in the announcement over the weekend.
Technical indicators are pointing towards a potential drop in BTC’s price, with the 4-hour chart showing a bearish divergence in the relative strength index (RSI) and lower buy volumes compared to sell volumes. This could lead to a correction down to key support levels at $8,821 and $8,500.
On the flip side, a high-volume acceptance above $9,442 could strengthen the bullish case for BTC and open the doors to $10,000. The long-term outlook remains bullish, with the monthly chart showing a falling channel breakout and a bullish crossover of the 5- and 10-candle moving averages.
Overall, the unveiling of Facebook’s Libra cryptocurrency has not had the desired impact on Bitcoin’s price, and the market may be at risk of a “sell the fact” pullback. Investors will be closely watching key support and resistance levels in the coming days to gauge BTC’s next move.
