Bitcoin price analysis: BTC/USD defends $6,400 support as Goldman Sachs reaffirms Bitcoin derivatives plans

Bitcoin bulls are currently nursing declines after being thrown off the wagon and down a steep cliff. The fall comes after a few weeks of a positive trend that began mid-August and spilled over into September. Bitcoin made a surprising move above $7,000 in a somewhat bearish market. The magic did not stop there as the crypto extended gains above $7,300 and got close to $7,400 before tumbling past various support areas towards $6,000. Bitcoin found to balance at $6,300 and managed a pullback above $6,400.

The force behind the collapse was the “fake news” that the investment provider bank, Goldman Sachs had abandoned intentions to start a cryptocurrency desk. Investors entered into a panic mode and the result was Bitcoin falling like a knife accompanied by other digital assets. Unsurprisingly, the current news in the market says that Goldman Sachs on track with its intentions with cryptocurrencies. The harm to the market has already been done and the ship is long gone. No wonder the market is non-reactive but the wounds are still fresh. Goldman Sachs Chief Financial Officer Martin Chavez, however, cleared the FUD saying:

“I never thought I would hear myself use this term but I really have to describe that news as fake news.” He went ahead and clarified that “The next stage of the exploration is what we call non-deliverable forwards, these are over the counter derivatives, they’re settled in U.S. dollars and the reference price is the bitcoin-U.S. dollar price established by a set of exchanges.”

In the meantime, Bitcoin is trading at $6,453 after a slight intraday retracement from exchanging hands marginally above $6,500. The trend is still negative but the bulls have decided to use the power they have left to guard the support at $6,400. At the same time, they are waiting for an opportunity to bite back at the bears and attack higher levels at $6,600 and $6,800. The 50SMA (hourly chart) is in the way of upside movement at $6,611.45 while the 100SMA is the ultimate resistance towards $7,000 at $6,890.18. If the support at $6,400 is deflated, the previous anchor at $6,300 will stand ground preventing a swing to $6,000.

BTC/USD 1-hour chart