Bitcoin is poised to breach above the Fibonacci 23.6 resistance level. It looks the momentum is on bulls’ side and Bitcoin will breach the resistance at $41431, and we will be watching this week how Bitcoin rises to test the next resistance at Fibonacci 38.2 level!
The major event in global financial markets last week was the quarter point interest rate hike by the Federal Reserve and the rally of both stock and crypto markets after the first rate hike by Fed since 2018. Bitcoin added nearly 4% in 24 hours after Fed’s rate hike to trade at $41,640 before retracing down as traders took profits. Ether (ETH) added 4.7% reaching weekly highs of $2,790, and Terra’s LUNA lost 0.6% in 24 hours. And the bearish crypto news Argentina signed a loan agreement with IMF saying it will restrict crypto usage was offset by reports non-fungible tokens (NFTs) will be coming soon to Instagram and an Argentina exchange opened a branch in Brazil.
Last Thursday the Argentine Senate approved a debt deal of $45 billion with the International Monetary Fund (IMF). The deal restructures a $57 billion program the country received in 2018, but contains a provision saying “to further safeguard financial stability, we are taking important steps to discourage the use of cryptocurrencies with a view to preventing money laundering, informality and disintermediation.” This is clearly a bearish development for global crypto market.
However an Argentina based crypto exchange – Lemon Cash, opened operations in Brazil last week. The company started operations on Monday with a beta version of its platform allowing 10,000 users to buy and sell Bitcoin and Ethereum using Brazilian reals through Pix, a real-time retail payment system launched by the Brazilian Central Bank, according to Lemon Cash’s co-founder and Chief Commercial Officer Martel Seward. Lemon Cash plans also to introduce a crypto card in 2022 in partnership with Visa, Martel Seward said.
Another bullish development for NFTs in general were Mark Zuckerberg’s comments last week “we’re working on bringing NFTs to Instagram in the near term." There were reports Instagram members will be able to mint their own NFTs within the app.
