Bitcoin retreating is intact currently after a strong impulse down reversed the uptrend following a rebound to five-month high. The price is below $21,600 currently. The price is testing again the Fibonacci 100 level after a consolidation retracing. The RSI is back in neutral zone. Bears are evidently in control and appear to have enough support to push the price down below the Fibonacci support in medium term unless market sentiment improves drastically.
Markets ended in down note last Friday despite data from the University of Michigan showing US consumer sentiment improved more than expected in February. Investors are cautious ahead of US inflation report tomorrow: a lingering inflation is likely to give more support to views that the Federal Reserve will continue rate hikes most of his year instead of pausing or moreover reversing the rate hikes. Meanwhile as the crypto market struggles to reignite investor optimism after the wave of bankruptcies that was crowned by FTX bankruptcy, the FTX last week has initiated a process of requesting politicians who received Bankman-Fried donations to return the money and crypto exchange Binance suspended US dollar bank transfers while the Bank of England says not to call digital Pound “Britcoin”.
The bankrupt FTX Group said it is sending “confidential letters” to politicians and other political beneficiaries of campaign contributions made by former CEO Sam Bankman-Fried and his deputies. FTX wants that money back: one in three members of the Congress received contributions from Bankman-Fried’s companies with the sum of donation in the magnitude of $93 million, according to the FTX's creditors estimates.
Crypto exchange Binance temporarily suspended US dollar bank transfers starting last Wednesday. However “all other methods of buying and selling crypto remain unaffected” according to Binance with the suspension not affecting Binance's US division.
Bank of England Deputy Governor Jon Cunliffe said the central bank has made no decision on whether a digital Pound would use distributed ledger technology and objected to calling it “Britcoin.” The Bank of England invited public opinions on plans for a central bank digital currency, with consultation document indicating plans to cap individual holdings of the digital currency at between 10,000 and 20,000 British pounds.
