Bitcoin in Danger of Falling to $55,000

Bitcoin was little changed during the European morning hours, pausing around $64,500 after falling to $62,500 on Thursday. That’s very close to its 50-day moving average, which remains a tactical support for traders. “If the drop happens, the dynamics at $63,000 and $61,000, where the 50-day and 200-day moving averages are, will be important,” said Alex Kuptsikevich, senior market analyst at FxPro. “A failure of that support could open the way to $55,000, which is quite scary. The average decline since the beginning of the year has been 15.4% and the average increase has been 26%.”

Cathie Wood’s ARK Invest sold $14.8 million worth of COIN shares ahead of Coinbase’s Q2 earnings announcement, the largest single-day sell-off since May 7. The sale means the fund manager sold more Coinbase shares on the first day of August than in the previous two months combined. After the market closed, Coinbase reported Q2 earnings that beat Wall Street analysts’ expectations, but profits came in lower than expected. Shares fell 5.2% to $212.64, briefly rising after the report and were little changed in premarket trading. ARK sold a total of 69,069 COIN shares across its two ETFs.

Hong Kong broker Futu Securities has introduced bitcoin and ether trading and is offering shares in Alibaba and Nvidia as rewards for new clients. The company, which calls itself Hong Kong’s largest technology broker, is working to “expand its crypto offerings in the near future,” according to a report by the South China Morning Post. Futu offers crypto trading services through a partnership with cryptocurrency exchange HashKey Exchange, one of two licensed companies in Hong Kong. Its subsidiary Panthertrade is also seeking a license to offer the same services. The organization is currently considered licensed by Hong Kong’s regulator, the Securities and Futures Commission, which would allow it to offer crypto services while it awaits full approval.

The chart shows leading, lagging economic indicators from the Conference Board of the United States. The leading indicator is trending down while the other two are rising, indicating economic weakness and a potential recession phase. Crypto analysts emphasize that a Fed rate cut implemented in an economic volatility environment may not help bitcoin. Source: MacroMicro