Bitcoin Legitimacy Grows as Facebook’s Coin Prepares to Launch

Libra, Facebook’s attempt at joining the crypto world is raising the legitimacy of digital assets and Bitcoin and other cryptocurrencies are surging.  Facebook’s digital coin is set to launch on Tuesday morning and already has key partnerships with Visa, Mastercard, Paypal and Uber.  This will allow for in-app purchases and deliver a strong boost to mainstream commerce acceptance.

Libra, will be pegged to a basket of real currencies, hoping to limit some of the volatility we have seen in the past two years.  It will prove difficult to be a stablecoin, but anything that increases the adoption of digital assets will be welcomed by the crypto world.

Price action on the Bitcoin daily chart shows today’s rally made a 13-month high.  If bullish momentum continues, the psychological $10,000 level should provide initial resistance.  Price could potentially form a bearish butterfly pattern at the $10,146 level.  Point D is targeted with the 200.0% Fibonacci expansion level of the X to A leg and the 1.618% Fibonacci expansion of the B to C move.  If valid, we could see a bearish reversal target the $9,600 level.  If the potential bearish Butterfly pattern is invalidated, the $11,828 region would be the next major resistance level.

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.