Bitcoin closed up four out of seven sessions last week and confirmed the upward bias with a new fractal low and fractal high! Bitcoin price is above $23,000 currently. A glance at the daily chart reveals Bitcoin has reversed its climbing after testing the Fibonacci 23.6 resistance level. The price is declining currently toward the resistance line it breached above two weeks ago, retracing into the recent trading range. RSI indicator has formed bearish divergence – reinforcing the current downward momentum. A reversal of this bearish momentum is needed for Bitcoin to resume advancing to test the Fibonacci 23.6 resistance again!
Bitcoin is retracing lower after US Commerce Department report Friday showing the personal consumption expenditures price index jumped 1% over month in June, outpacing personal income gains, which rose just 0.6%. With markets gauging what change, if any, will recent data induce in Federal Reserve actions at next meeting in September, will raise rates by 75 basis points at its policy meeting this Wednesday after the US reported inflation at a new four-decade high of 9.1% last week, US legislators passed a bill that creates White House blockchain adviser role, while the impact of recent crypto downturn is still felt as reports say crypto lender Babel Finance lost $280 million trading customer funds and US regulators ordered crypto lender Voyager to stop misleading customers.
The bipartisan US legislation, known as the Chips and Science Act, cleared both chambers of Congress after a House vote on Thursday and will establish a new adviser on blockchain and cryptocurrency issues who will work in the Office of Science and Technology Policy.
Babel Finance, the Hong Kong crypto lender that suspended withdrawals last month after Celsius Network and Voyager Digital suspended withdrawals amid "liquidity pressures," reportedly lost $280 million in proprietary trades with customer funds. Babel contends it is working to convert hundreds of millions of dollars of debt into equity as it looks to obtain a revolving credit facility to raise funds, according to the deck.
The US Federal Reserve and Federal Deposit Insurance Corporation issued a cease-and-desist statement to crypto lender Voyager to stop making incorrect claims that the company was insured by the government. The regulators "demanded" that Voyager "immediately remove" any statements or references suggesting the company is FDIC-insured and send a letter to the Fed and FDIC confirming not only the removal of said references, but also what steps Voyager took to do so.
