Daily huddle, review and thoughts on the market:
#BTC (candles four hours). Bitcoin made a technical rebound from the lower line of the Bollinger Bands indicator, the price closed above the moving average MA 20 4 H and the instrument managed to break through the 0.786 Fibonacci correction level ($37,777) contrary to the expected trajectory of movement from yesterday's review. However, the asset failed to return within the ascending channel, the upward impulse was stopped by the dynamic resistance level — EMA 100 4 H and the lower boundary of the trading formation.
According to the RSI indicator, it can be noted that its line has reached the trend line of resistance, after which there was usually a local decline in bitcoin. After the perfect impulse, there is a decrease in trading activity, which also indicates a weakening of buying pressure. I think that we will see another attempt to storm the lower border of the trading channel in the near future and, with a greater degree of probability, a decline in the asset from $39,300 to the support level of $36,500.
#ETH. Ethereum against #BTC has grown by 4.3% in the last 24 hours. The asset is trading above the $2,600 support level, the nearest resistance is at $2,835.
The international payment system Visa reported a significant increase in the use of cryptocurrency on its platform in the first fiscal quarter of 2022, the holders of Visa crypto cards spent more than $ 2.5 billion in dollar terms to pay for goods and services (1).
The payment system CEO Alfred Francis Kelly Jr. noted that this figure represents 70% of the volume of cryptocurrency payments using Visa cards for the entire 2021 fiscal year. Currently, more than 65 cryptocurrency platforms and exchanges cooperate with the transnational financial services corporation.
Let us remind you that in December 2021, the Visa payment system began to provide consulting services for working with cryptocurrencies for its clients, the first of which was the American bank UMB. Visa is trying to get ahead of its main competitor Mastercard in this direction. I think that the unfolding competition between the two payment giants in an effort to integrate cryptocurrency services into their structures can lead to greater acceptance of digital assets among, at least, their customers.
Major Wall Street indices started the last session of January with positive dynamics. Market participants continue to follow the corporate reporting season and build forecasts for the trajectory of changes in interest rates of the US Federal Reserve System. The focus of investors will be on the US labor market report for January, which will be published on Friday, and on the reporting of large companies, about 110 firms included in the calculation of the S&P 500 index will report this week.
As a result, the US stock market ended trading on Monday with growth due to the strengthening of the sectors of technology, consumer goods and consumer services. At the close of the New York Stock Exchange, the Dow Jones gained 1.17%, the S&P 500 rose 1.89%, and the NASDAQ Composite rose 3.41%.
The total capitalization of the cryptocurrency market increased by 4.1%, the dominance of bitcoin fell by 1.3%. Bitcoin is under dynamic resistance in the form of EMA 13 from the daily timeframe, which has not been overcome since December 31, 2021, so it is logical to expect a local pullback of the instrument, however, the possibility of a squeeze of short positions from current levels cannot be completely ruled out.
Techspeedy does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
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