Bitcoin consolidating as Facebook explores blockchain

Bitcoin’s price declined on Wednesday, as the bulls continued to struggle below the key psychological level of $4,000 which, if breached, could pave the way for a re-test of the December high.

BTC price action has cooled over the past eight days, reflecting tepid trading conditions in the overall market despite the presence of higher than normal volumes.

Based on the daily chart, Bitcoin is still testing the 50-day moving average. Momentum has weakened over the past few sessions, but while BTC remains above the 20-day EMA, we shouldn’t expect sudden drops. Resistance still stands around $4,000 while support is found near $3,750.

Although we’re still experiencing a consolidation period, Bitcoin is struggling to overcome the psychological $4,000 resistance. It has been nearly three weeks since that level was breached. In late February, Bitcoin peaked around $4,200 before reversing course.

Daily trade volumes on virtual currency exchanges were reported at just over $9 billion, according to CoinMarketCap. At current values, Bitcoin has a total market capitalisation of $68.5 billion.

Altcoins on the move

EOS is trying to find its feet again after a few soft sessions of late – it cooled as much as 12% over the past five days. EOS price has managed to regather some upside momentum though as the price heads towards a daily closure in the green.

Dash’s price surge began on Tuesday after PolisPay, a blockchain payment platform, announced it had integrated the cryptocurrency into its MasterCard-backed debit card. Prior to integrating Dash, PolisPay supported crypto payments through Litecoin, Ethereum, Digibyte, and the native POLIS token. PolisPay allows users to deposit cryptocurrency directly into their account and receive a proportionate balance of fiat currency that they can then use to buy goods and services from retailers who don’t yet accept crypto. Users can spend their balance anywhere MasterCard is accepted and can even withdraw their funds from MasterCard ATMs.

On the other hand, the price of Tron has been consistently falling since late February, having dropped over 15% following an initial steep fall. Bears have been in decent control ever since they forced a breach of a critical ascending trend line of support. The breakout was observed during the time of the BTT token release by the Tron team. In the latest weekly data provided by Dappradar, Tron’s transaction volume surged.

Facecoin

Facebook recently acquired Chainspace, a blockchain-based start-up that specialises in smart contracts for facilitating payments. This is a concrete move into the blockchain world, and since then, the NYT has uncovered rumors that Facebook will be unveiling its very own coin soon.

The Chainspace purchase represents a unique hiring method where Facebook can acquire a company and get access to all the intellectual human capital inside.

Right now, CEO Mark Zuckerberg is trying to do everything he can to restore the trust of users in the platform. Last week he detailed how he expected much of Facebook’s utility to move to the private messaging aspect and how he’s making it clear that the privacy of users is going to become a priority moving forward.