Bitcoin price analysis: BTC/USD briefly tests the waters below $8,000; MUFG, 4th largest bank in the world tests its own cryptocurrency
|- The new MUFG coin will be used to buy services and goods in shops and restaurants among other uses.
- Bitcoin price still in danger of sliding below $8,000.
Bitcoin price has recovered after sinking below $8,000 for the first time in May. Selling pressure engulfed the largest cryptocurrency by market capitalization in Asian trading hours on Friday. BTC/USD has, however, embarked on a recovery journey aiming to break barriers towards $8,500 as we usher in the weekend trading session.
Mitsubishi UFJ Financial Group (MUFG), the largest lender in Japan is shaking waves with its announcement latest announcement. The bank is testing its own cryptocurrency that is referred to as MUFG. The digital asset is being released to enable swift cross-border shopping experience. Besides MUFG coin, the bank is exploring other ways of leveraging the tokenized assets and the blockchain technology. The new coin will give customers the ability to pay for goods and services in “restaurants, convenience stores, and other shops, as well as make transfers to the accounts of other participants” Significantly, MUFG coin is set for the launch later in the year.
Bitcoin price has broken below the short-term support area at $8,100. The attempts to breach $8,250 were denied by sellers who are intent on pushing the price back under $8,000. Indicators on the one-hour chart are signalling the dominance of selling pressure in the near-term. The gap between the 50 SMA and the 100 SMA is widening showing that the bears have the upper hand. The immediate support is at $8,050, but extend declines will be halted by the last resort support level at $8,000. However, Bitcoin price is in danger of correcting lower and exploring levels in the $7,000 range.
BTC/USD 1-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.