Relevance up to 08:00 2022-01-19 UTC+00
Crypto Industry News:
Bitcoin is losing its “dominance” among cryptocurrencies used as a means of payment. This is according to the latest data from BitPay. The company revealed that in 2021 the percentage of handled BTC transactions fell from 92% from the previous year to 65% today.
So in 2021, bitcoin was still by far the most used cryptocurrency by those making cryptocurrency payments via BitPay. Nevertheless, compared to 2020, it recorded a sharp decline.
ETH (15%) came second in this special ranking. Stablecoins as a whole accounted for 13%. Of the remaining 7%, almost half of the transactions were made in DOGE, SHIB and LTC.
The largest increases were related to stablecoins, which are used, for example, by companies to make cross-border payments, and ETH. It is also worth noting that the use of stablecoins increases when the market is in a downtrend.
BitPay also reveals that those who pay in cryptocurrency often do this to buy luxury goods such as jewelry, watches, cars, boats, and even gold. It is worth noting that in 2021 the volume of transactions related to the purchase of luxury goods increased to 31% of the total volume. In the previous year, it was only 9%.
Technical Market Outlook
The Bitcoin bulls have managed to retrace 38% of the last wave down and were rejected from the higher levels when the Doji candlestick and Bearish Engulfing candlestick pattern were made at the level of $44,352. Since then the market reversed and is heading towards the key short-term technical support located at the level of $41,695. Any violation of this level will open the road towards the next technical support seen at $40,635 and the 2022 low at $39,555.
Weekly Pivot Points:
WR3 – $50,044
WR2 – $47,124
WR1 – $45,231
Weekly Pivot – $42,290
WS1 – $40,477
WS2 – $37,504
WS3 – $35,607
The ABCxABCxABC complex corrective cycle is still in progress and is much more complex and time-consuming than anticipated. According to the long-term charts the bulls are still in control of the Bitcoin market and the next long term target for Bitcoin is seen at the level of $70,000. This scenario is valid as long as the level of $39,474 is clearly broken on the daily time frame chart (daily candle close below $39,000 would be considered as a long-term trend change due to the lower low placement).
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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