The “lost week” saw a Bitcoin hitting $3,456, Ethereum dip below $100, and Ripple not looking resilient. The downfall was an extension of the November 14th sell-off that sent BTC/USD below $5,000, and the November 19th plunge that sent it below $5,000. The Black Friday weekend was quite dark for cryptos.
However, all digital currencies are enjoying a recovery. Ohio will accept Bitcoin as a payment for no less than 23 types of business taxes from today, November 26th, also known as Cyber Monday. Ohio is the first US states to do so and one of the first local governments in the world to move forward.
Critics of cryptos state that the inability to pay taxes, enforceable by governments, undermines their prices. The step by the Mid-Western state is a significant step forward. Ohio’s Treasury explains the choice of the granddaddy of cryptocurrencies:
Cryptocurrencies cannot be transferred to third parties without user initiation, thereby practically eliminating fraud; Anyone can view all transactions on the blockchain network; Payments on the blockchain can be tracked on a second-by-second basis; a minimal fee is charged to confirm transactions on the blockchain network
However, looking at the technical charts, the picture remains quite gloomy and perhaps provides an opportunity to take profits, go short, or just sell before prices plunge to lower levels.
BTC/USD Technical Analysis – just another dead cat bounce?
Examing the Relative Strength Index (RSI) on the four-hour chart, we see the that bounced above 30. The drop below that level indicated oversold conditions, from where the bounce came. Yet after this bounce, the current level of around 37 indicates BTC/USD could resume its falls. Momentum remains to the downside, despite the recovery.
