Winklevoss twins' Gemini Trust creates cryptocurrency pegged to USD, but Bitcoin still trapped below $6,400

Bitcoin is changing hands at $6,360 after an initial attempt to break above $6,400 during early Asian hours. The digital coin No.1 has recovered from Saturday's low at $6,116, though the upside momentum is too weak despite some positive industry news.

Meet the first regulated stablecoin

Gemini Trust Co., the New York–based cryptocurrency exchange, launched its own stablecoin pegged to US Dollar at 1:1. It is called Gemini dollar, and, according to the company, it will be the first regulated stablecoin in the world, which will allow users to send and receive USD on Ethereum network. 

 “The Gemini dollar—the world’s first regulated stablecoin —combines the creditworthiness and price stability of the U.S. dollar with blockchain technology and the oversight of U.S. regulators, namely the New York Department of Financial Services (NYDFS),” the company announced in its blog post.

Proponents of blockchain technology support the idea of stable coins as they help eliminate the deficiencies of cryptocurrencies, namely, high volatility and lack of trust. Back in August, Tyler Winklevoss, co-founder and CEO of Gemini Trust, said that the company had been preparing for this launch for more than a year.

Bitcoin's technical picture

On the intra-day basis, BTC/USD is supported by SMA100 (1-hour) at $6,346, and SMA50 (1-hour) at $6,301. Once these areas are cleared, the sell-off may be extended towards $6,116 (September 8 low), followed by critical $6,000. On the upside, the nearest resistance is created by $6,400, though the ultimate bulls' goal is 23.6% Fibo retracement at $6,800.

BTC/USD, 1-hour chart