Crypto Industry News:
Cryptocurrency market analyst Nicholas Merten believes that the decision of the Hong Kong authorities, which allowed retail trading of digital assets, is great news. It analyzes the broader impact this could have on bitcoin.
In a new YouTube video, Nicholas Merten said that the recent decision by the Hong Kong authorities to reopen the region to cryptocurrencies is great news:
"Okay, so the vast majority of investors [in Hong Kong] can now re-invest in cryptocurrencies. This is definitely very good news."
Merten pointed out that in the most optimistic scenario, in which 1% of the city-state's GDP would be invested in cryptocurrencies, "this would mean an inflow of capital to the industry of $3.8 billion."
He pointed to next year's bitcoin halving, as a result of which the supply of new BTC that hit the market will be halved. In his opinion, "narrative alone" is not enough to trigger a bull market. Real changes at the level of the cryptocurrency economy are different...
More and more often, however, we can hear voices that a new boom in cryptocurrencies is ahead of us. Mike Novogratz, CEO of Galaxy Digital, is of the opinion that this will start later this year. He pointed to the last quarter of this year. The reason, however, is not only Hong Kong's policy, but the fact that the Chinese WeChat application allows you to trade bitcoins. It is used by up to 1.3 billion people a month. They are potential investors. In addition, in the background, Chinese TV broadcast a short report about cryptocurrencies, which can also be considered an advertisement for digital assets in the Middle Kingdom.
Technical Market Outlook:
The BTC/USD pair has reversed sharply from the level of $27,452 and is currently trading below 50 and 100 MA levels. The down move is being backed up by momentum, which is back below the level fifty and there is still a room for more. The next target for bears is seen at the swing low located at $25,850. The intraday technical support is seen at $26,606 and the intraday technical resistance is seen at $27,555.
Weekly Pivot Points:
WR3 - $28,056
WR2 - $27,490
WR1 - $27,126
Weekly Pivot - $26,917
WS1 - $26,553
WS2 - $26,343
WS3 - $25,770
Trading Outlook:
The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The next target for bulls is seen at the level of $32,350. As long as the level of 19,572 is not clearly violated, there is a chance for a long-term up trend to continue.
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