(Bloomberg) -- While the fallout over Facebook Inc.'s controversial cryptocurrency project drags on, technical signals are painting a brighter picture ahead for Bitcoin.
The world's largest cryptocurrency by market value appears to have solid support around its 50-day moving average -- it bounced off that level twice last week, during which the coin lost close to 12%.
In addition, the GTI Vera Band Indicator, which tracks upward and downward trends, is showing Bitcoin's in a selling pattern. It regained its lower band limit late last week, but breaking above its upper band limit could signal another potential run-up. If the current downtrend reverses, it could prove to be a temporary dip, as happened in early June right before Bitcoin rallied to its yearly high of close to $14,000.
Cryptocurrencies have been under pressure recently after Facebook said it plans to launch a so-called stablecoin dubbed Libra. Industry analysts said the social media giant could leverage its 2 billion users to create a de facto global currency, prompting push-back from central bankers, U.S. lawmakers and even President Donald Trump. The project's also drawn the ire of policy makers who have expressed concerns over privacy and regulatory issues.
“When you have Facebook, one of the largest holders of data, creating a currency, I question whether or not regulators will let it happen,” said Chris Gaffney, president of world markets at TIAA Bank. “But I think the bigger question for Facebook is: are they going to be able to sell it? Who's going to buy it, who's going to use it?”
Questions over Libra's adoption and efficacy have pushed Bitcoin down about 17% so far this month. It fell as much as 3.6% to trade as low as $10,147 in New York. Peer coins, including Litecoin, Monero and Zcash also retreated.
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