Bitcoin Weekly Forecast: Nothing to crow about

  • The cryptocurrency market failes to develop a sustainable recovery.
  • Bitcoin’s technical picture is full of bearish signals.

Bitcoin (BTC) attempted a recovery above $8,400 and resumed the decline into the end of the week. At the time of writing, BTC/USD is changing hands at $7,800, down over 5% on a week-on-week basis. Unsuccessful recovery attempts increase pressure on the coin as the market sentiments get sour. Disappointed by bitcoin’s weakness, speculators exit the market and switch into a wait-and-see mode until the situation clarifies.

Notably, bitcoin’s market dominance decreased to 66%, which is the lowest level since the beginning of August 2019. Bitcoin has been losing its market share since September 6.

What’s going on in the market

The cryptocurrency market has been at the mercy of sentiments, rumors and whales activity. No surprise here.

The cryptocurrency industry has had no shortage of news this week. However, the market movements were speculative and largely unrelated to the fundamental developments, which is no surprise to anyone involved in the crypto industry long enough.

Anyway, let’s have a closer look at what’s going in the crypto universe.

If you can’t beat them, join them

That’s the strategy adopted by the growing number of authorities and regulators all over the world. Bank of Canada and Sweden Riksbank have recently joined the global central banks that consider issuing their digital currencies to fight the threat emanating from bitcoin, Libra and other digital assets.

As the Canadian regulator would have it, cryptocurrencies can hamper the regulator’s ability to pursue a monetary policy or act as a creditor. According to the presentation submitted to the bank’s governor Stephen Poloz and the board of directors, the central bank-issued digital coin (CBDC) may be used along with cash initially, and replace it down the line.

The authors of the report admitted that digital currency…

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