Crypto Market Cap Nears $300 Billion as Capitol Hill’s Blockchain Hearings Take Place
Here is a fresh update from our good friends over at Bitcoin Bravado.
The time of writing is 11:00 AM CST and 4:00 PM UTC. The price of Bitcoin, along with most other cryptocurrencies, has surged over the course of the past 24 hours. Bitcoin has risen over 10% as more than 25 billion USD has flowed into crypto since yesterday. 24 hour trading volume has surged by nearly 100% to 6.7 billion USD in the past 48 hours. Safe to say, that renewed positivity in the markets is now finally be reflected in price action.
We signaled multiple times over the past few weeks that $6800 was the key level of resistance that would need to be broken in order to see the gains we witnessed yesterday.
At this point our team remains bullish on the prospects of Bitcoin and alts in the coming days and hopefully weeks.
Let’s examine a few scenarios for the potential upcoming movements of the crypto markets. We are eyeing $7700-7800 as another crucial resistance point. We think the market will at least flourish towards this resistance level. Once Bitcoin reaches this zone, we will take profits on 50% of our alt positions returning to a 50/50 crypto/fiat portfolio allocation.
Crucial support lies at $7100. Although the $6800 resistance should now hypothetically be turned into a support, we would not view a drop to the $6800 level after yesterday’s surge to be a positive indicator for this market. Expect us to return to on average 30/70 crypto/fiat exposure if the $7100 range doesn’t hold. We would then reevaluate the state of the market once it reaches the $6800 level.
Until either of these crucial price ranges are reached, our bullish bias is still in full effect as our team has entered various alt positions.
In other news, Mastercard has been granted a patent that gives it the right to hold a ‘fractional reserve of blockchain currencies’. Mastercard has justified this decision because of their user base preferring to use crypto as a payment method. This would be a huge step for the space if one of the largest payment processors in existence implemented crypto payments as an option.
Not only would this increase usability of crypto but it would also educate consumers on the positive characteristics of using cryptocurrency. This could also go a long way towards governments around the world recognizing cryptocurrency as legal tender and not as an asset that must have capital gains on the underlying asset accounted for. Capital gains stymies the current primary use case of cryptocurrency and the Mastercard development could go a long way in shifting perception on using Bitcoin and cryptocurrency as legal tender.
We believe this is yet another positive development for the space. We do not want to get ahead of ourselves and state the bear market is over, but we do believe that the combination of positive developments and technical analysis should provide at least a short reprieve in the downturn we have experienced over the course of the past 6 months. We will keep you updated on our team’s movements and how we will be playing the market resurgence.
As a closing statement, make sure to tune in and watch the Full Committee – Public Hearing RE: Cryptocurrencies: Oversight of New Assets in the Digital Age