Recently, Visa, one of the world’s largest credit card payment companies, announced that it will upgrade its cryptocurrency service to allow users to settle transactions with USD Coin (USDC) on its payment network. USDC is regarded as an encrypted stable currency, and 1USDC is equivalent to 1 US Dollar. In order to save the cost and complexity of converting digital currencies in cryptocurrency wallets into traditional currencies for settlement, Visa stated that it had cooperated with its partner Crypto.com and digital asset bank Anchorage earlier to send USDC to Visa through the Ethereum address of Anchorage. In this regard, Visa Executive Vice President and Chief Product Officer Jack Forestell said, “This is equivalent to an important milestone set by the need for financial technology to manage businesses with stablecoins or cryptocurrencies” and “safely promote the use of all Payments in different currencies”.
In addition, the global payment giant Paypal officially announced yesterday that US users can pay with Bitcoin, Ethereum, Bitcoin Cash and Litecoin to millions of online merchants around the world through its digital wallet. In addition, users can also sell cryptocurrencies through the platform. It should be noted that the platform still requires the cryptocurrencies to be converted before settlement. If the user converts the encrypted currency to US Dollars as the settlement method, then this will not be included in the additional fee; if the user converts the encrypted currency to non-US currency as the settlement method, then this will be settled according to the standard exchange rate.
In addition, the Chicago Mercantile Exchange (CME) also stated yesterday that if regulatory approval is passed, the exchange is expected to start adding a bitcoin derivative to the financial market in May this year, Micro Bitcoin futures. According to CME’s contract specifications, the contract value of each Micro Bitcoin is only 0.1 Bitcoin, which is much lower than the contract value of Standard Bitcoin, which is 5 Bitcoin. In this regard, CME stated that Micro Bitcoin not only retains the functions and advantages of Standard Bitcoin, but also “supports investors to hedge against the price risk of spot Bitcoin” and “investment methods are more efficient and cost-effective”.
Technical Analysis:
Judging from the daily chart, Bitcoin against the US Dollar is in an ascending channel; the upper Bollinger Band, the historical high of 60,721 the 100% Fibonacci extension level of 61,910 is the key resistance area. From the indicator point of view, the MACD double line seems to be forming a golden cross and the red kinetic energy column (histogram) is gradually shrinking; the relative strength index (RSI) and stochastics are both near the overbought area. Calculated in accordance with the Fibonacci extension, should the key resistance on the recent success of the asset be broken, then the next resistance position is seen at 70,945 (Extended Fibonacci level 127.2%) and 82,435 (161.8% Fibonacci extended horizontal). Overall, the market is optimistic about the future trend of Bitcoin. There are those who by Fibonacci number (Fibonacci Sequence) calculation expect Bitcoin to reach 70,000; on the other hand, some analysts pointed out earlier this year that Bitcoin could reach the 100,000 level this year.
Judging from the 4-hour chart, the current asset price has left the upper Bollinger Band, and the indicators show signs of slight easing of bullish momentum. In the short term, the middle Bollinger Band below the asset price is still critical. If the price of the asset falls below the middle Bollinger Band, it may mean that it will face a short-term technical adjustment. The lower support is 54,250 (the bottom line of the ascending channel, the lower Bollinger Band and the long-term moving average, ) and 49,230 (61.8% Fibonacci extension level).
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Larince Zhang
Market Analyst – HF Educational Office
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