Bitcoin and other major cryptocurrencies began the new month with strong gains. The reasons behind this move are unclear, but a number of news has recently hit the market that have improved investor sentiment:
- Yesterday Visa revealed an outline of what it calls a "universal payment channel" that will facilitate transactions between different stablecoins and central bank digital currencies (CBDCs). As part of this project, Visa also implemented its first-ever sample smart contract on Ethereum's Ropsten testnet. Smart Contract shows a payment channel that accepts both ether (ETH) and USDC stablecoin. Company aims for UPC to act as "network of blockchain networks" to transfer digital currencies.
- Tesla CEO Elon Musk stated that the cryptocurrency space must be left alone during a recent interview. He added, "It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement"
- Today, Nayib Bukele, President of El Salvador, revealed the latest updates on the Volcano node via Twitter. The country recently launched its state-owned geothermal Bitcoin mining facility and mined nearly $ 500 worth of Bitcoin. The Salvadoran government intends to increase Bitcoin mined over time, as the node is currently undergoing tests.
Bitcoin price rose sharply during today's session. During Asian trading hours broke above the major resistance zone around $ 44,000 which coincides with downward trendline and 38.2% Fibonacci retracement of the upward wave launched in July. This level now acts as the nearest support. Later in the session price broke above the upper limit of the 1: 1 structure and 200 SMA (red line) and is approaching major resistance at $ 48,000 which is additionally strengthened by 23.6 Fibonacci retracement. Should a break higher occur, then upward move may be extended to the $ 50,000 handle, or even resistance at $ 53,000 where September highs are located. Source: xStation5
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