Crypto newsletter: Bitcoin leaves bullish channel

Summary:

• Bitcoin breaks down below $8600
• Mayhem related to US-China trade talks as well as Brexit turmoil have supported digital coins
• SEC rejects an application to launch a Bitcoin ETF

Cryptocurrencies have performed quite well so far this week. One may suppose that this strength may be caused, at least to some extent, by turmoil regarding US-China trade discussions as well as a Brexit never-ending story - this is due to the fact that some market participants treat digital currencies like safe assets.

After notable price gains Bitcoin faced a major obstacle in the form of $8600, and the price has moved back since. Moreover, Bitcoin has already broken below the lower bound of the bullish channel which may not bode well for bulls. A strong support could be found nearby $8060 (the 38.2% retracement spans at the same area). In turn, once bulls take control anew, they will have to smash $8600. Source: xStation5

After breaking below the upward trend line Ripple is continuing its decline. The price is currently moving around the 61.8% retracement and if bears keep pushing, it could take the price down the road to $0.25, whereas a bullish case would the price nearby $0.28. Source: xStation5

Crypto news:

• The US SEC rejected another Bitcoin ETF application suggesting lack of appropriate regulations

• The US IRS published the guidelines regarding how to calculate tax on crypto trading, most of them were in line with expectations

• PayPal will no longer collaborate with Facebook on a Libra project