The
cryptocurrency market is gradually growing. Bitcoin is showing its first
bullish signals and some altcoins are returning to the upside zone. The gradual
recovery of crypto-assets is supported by the fundamental news backdrop.
Positive news has not impacted coin prices, but there is a strong possibility
that in the longer term, these announcements contribute to a multiple increases
in coin prices.
India
postpones bill passage
The
government of India has decided to delay the passage of a controversial
cryptocurrency bill. Most experts believe that such a strict policy would have
a negative impact on the acceptance of digital assets in the country. Investors
were positive about the postponement of the regulation, but the possibility of
it being passed in 2022 is still high. Despite this, it is good news at the end
of 2021, which has removed additional excitement and volatility from the market.
Visa sets
trend for 2022
The really
positive news is the announcement of the Visa payment system. Representatives
of the company, together with 60 cryptocurrency platforms, have launched
full-fledged cryptocurrency cards. I
believe this announcement was a major precursor to the global adoption of
crypto-assets. While a lot of details and functionality of the future card are
not completely known, we can state the fact that if 2021 is the year of coin institutionalization,
then 2022 will be the year of global adoption of cryptocurrencies in everyday
life.
In 2021,
venture capital funds have poured about $30 billion into the crypto industry. It is
more than in the previous five years. In 2022, this trend will be exacerbated
and institutional investments will be followed by a significant share of
retailers. It also suggests that the adoption of cryptocurrency payment cards
will significantly transform the altcoin market. It is possible, that Bitcoin
will continue to be institutionalized and new users will be looking for
effective alternatives. So, in my view, the number of projects with a
large-scale ecosystem will increase in 2022.
Bitcoin and
cryptocurrency market not yet ready
As of 23
December, the total capitalization of the cryptocurrency market has barely
passed the $2 trillion mark. Most coins are coming out of hibernation, but
seller activity is still too low. The market follows the dynamics of Bitcoin,
which is the cornerstone for the growth of all cryptocurrencies. The asset is
showing an uptrend on the four-hour chart. However, in case the price bounces
back from the upper limit of the narrow range of fluctuations, the flat trend
can be considered to persist for the next few days.
However, the technical indicators contradict my position and point to the growing strength of the bullish momentum. The MACD has risen above zero and stochastic has formed a bullish cross and broken into overbought zone. The Relative Strength Index also shows an increase in purchases. With this in mind, the coin has chances to break the local wedge and enter the final $49k-$50.8k area of the wide $42k-$51.6k range. However, a successful breakout would only be a preparatory stage for a future recovery phase. Overall, the bitcoin market does not look ready for a full-blown bullish breakout and the start of a recovery period.The material has been provided by InstaForex Company - www.instaforex.com
http://dlvr.it/SFyJkM
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