Bitcoin began rising after a drop that took place on Saturday. The currency news flow is pushing BTC higher. In addition, Visa announced its intention to create the crypto services that will allow ordinary people to use cryptocurrencies. Thanks to the positive news, BTC consolidated above $50K. This is the first step towards its full recovery.
At 12:30, the asset was trading around $50.1K, thus providing bullish signals and pointing to the confident bullish position in the market. Fundamental factors are also supporting BTC. Thus, Visa said that it would create new consulting and advisory services to help its clients navigate the world of cryptocurrencies. In the future, this may significantly expand the use of digital assets, and, first of all, the use of bitcoin in everyday operations. In addition, the payment giant will give advice to financial institutions and retail investors regarding the introduction of cryptocurrency functions and the use of NTF tokens.
In fact, this is positive news to the whole crypto market. However, I would like to focus on its influence on bitcoin in the long term. It is quite possible that BTC will attract additional investments from institutional traders. In addition, the number of retail traders may also jump to the levels recorded in 2019-2020. In the short term, the news may encourage market participants. However, the positive effect could be offset by the results of the hearing in US Congress called "Digital Assets and the Future of Finance".
On December 8, the fear and greed index was at the level of 28. Thus, the market is likely to react to the hearing. There are two possible scenarios. If two sides come to a conclusion, the market will show an impulsive rise. It may even advance to the level of $58K. It is hard to predict a further price movement since it may drop after the impulsive rise. In this case, there are two scenarios. According to the first one, BTC will drop to $55.7K, touching the 0.5 Fibonacci level. After a short-lived consolidation, the asset will resume growing to $60K. According to the second scenario, the price will fall deeper to $52.6K, the 0.618 Fibonacci level. In this case, the price will be within the correctional channel and under the pressure from the downward resistance line.
If the hearing has a negative result, BTC may break $45K and trade between the levels of $40K and $45K. Then, it may either break $40K and slide to $35K-$40K or it may jump to $45K-$50K. This second scenario is really good for the bullish market since speculative activity will drop to zero and liquidity will boost BCT to new highs.
It is most likely that results of the hearing will affect the main cryptocurrencies. In addition, Jerome Powell's speech may also influence bitcoin. Thus, on December 8-9, the first cryptocurrency could be extremely volatile.
