5 Things to Know in Crypto: BTC Ranges Under $24K Ahead of Macro Events, Threatens Bearish Breakout

Key Points

• Cryptocurrency markets are in wait-and-see mode ahead of the release of US Retail Sales data and FOMC minutes.
• Bitcoin was last changing hands just under $24,000 and Ethereum under $1,900.
• Technicians expressed concerns that Bitcoin has formed a “bearish flag” which could signal a drop back below $20,000.

Crypto Prices Little Changed Ahead of Key Macro Risk Events

Price action in cryptocurrency markets remains broadly contained on Wednesday, with the likes of Bitcoin and Ethereum still within Tuesday’s intra-day ranges, as trade enters wait-and-see mode ahead of the release US July Retail Sales figures and the minutes of the Fed’s latest policy meeting later in the day. The data will provide a timely update as to the health of the US consumer at the start of Q3 and, if weak, could reignite debate about whether or not the US economy is in recession.

The Fed minutes, meanwhile, will shed light on the central bank’s appetite for further monetary tightening at upcoming meetings, with markets currently split over whether the bank will lift interest rates by 50 or 75 bps at its meeting next month. Bitcoin was last changing hands just under $24,000 and not much changed in the last 24 hours. Likewise, Ethereum was last trading just under $1,900 and also not much changed over the same time period.

According to CoinMarketCap, the likes of BNB, XRP, SOL, ADA, DOGE and DOT are all flat to 2% higher in the past 24 hours. The meme coins have been in focus recently after mustering some big technical breakouts in recent days, though the bullish momentum has faded as of Wednesday.

Bitcoin “Bearish Wedge” Pattern?

Some technicians have expressed concerns in recent days that Bitcoin may have formed a technical pattern that can be considered bearish and indicative that a drop back under $20,000 could be on the cards. In the past few weeks, Bitcoin has formed a “bearish wedge” pattern, they say. Bearish Wedges and Bearish Flags can be described as a period of consolidation/even a slight rally, but within the confines of an ongoing bear market rally.

SEC Sues Dragonchain Founder Over Selling Unregistered Securities

The US Securities and Exchange Commission (SEC) has filed a complaint against Dragonchain’s founder John Joseph Roets and the three entities he controls, Dragonchain, the Dragonchain Foundation and The Dragon Company, for failing to register more than $16 million in crypto asset securities offerings over the course of five years.

During the Bitcoin market boom at the end of 2017, a number of crypto start-ups delved into Initial Coin Offerings as a means of raising money from their tokens. In fact, at their peak in 2017, initial coin offerings overtook venture capital as the main fundraising method for blockchain start-ups.

Brazil’s Biggest Investment Bank Launches Crypto Trading Service

BTC Pactual, Brazil’s largest investment bank, just launched a cryptocurrency trading platform for its clients. Clients will now be able to trade Bitcoin, Ethereum, Solana, Polkadot and Cardano in a minimum size of 100 BRL. BTG Pactual’s head of digital assets said that “cryptocurrencies are a new technology with great potential for transformation, bringing with it risks and opportunities… Entering the cryptocurrency universe is another important step in meeting demand from our clients and filling a gap in the market”.

Major investment banks/financial institutions are increasingly moving to provide cryptocurrency trading services to clients. Last week, BlackRock announced a partnership with Coinbase to offer crypto trading services to its US-based institutional clientele.

Argentina Ethereum Conference Attracts 4,000 Visitors

According to reports in the crypto media on Tuesday, an Ethereum Conference in Buenos Aires, the first of a series of ETH conferences across South America between now and the end of October, was a success, attracting over 4,000 visitors. Argentina has one of the highest crypto adoption rates in the world, owing to its persistently high inflation rates (that recently moved above 7% MoM in July) and capital controls.