Crypto Industry News:
The former CEO of MicroStrategy, a company that invests in BTC, Michael Saylor, spoke again about cryptocurrencies. In his opinion, bitcoin adoption is now driven by, among others, by dollar inflation.
Inflation Drives Bitcoin Adoption
In a recent interview with CNBC, Saylor noted that there are two main drivers for bitcoin adoption. The first is the fear of inflation, which causes a loss of confidence in fiat currencies. This in turn causes investors to turn to assets like BTC.
"There is macroeconomic anxiety about inflation and when inflation takes place, people lose confidence in fiat currencies. This means they start to realize that anything that is valued based on cash flow is a currency derivative and bitcoin is not valued on the basis of cash flows.
Added to all this is the banking crisis. We've already seen the failures of Silvergate Bank, Signature Bank, Silicon Valley Bank, and most recently, First Republic Bank. These events, according to Saylor, undermined investors' faith in the banking system.
"The collapse of the banks is causing people in the western world to start to lose faith in the banking system a bit, but remember that bitcoin is a bank in cyberspace run by incorruptible software... So it is the combination of fear of inflation and risk associated with banks that drives bitcoin adoption," Saylor said. .
Saylor also reiterated that MicroStrategy still holds the bitcoins it purchased. The company will continue to hoard digital assets, apparently believing in further increases in the BTC/USD chart. He also emphasized that "the real key to bitcoin" is hoding. He says his company's shareholders and bondholders have understood that MicroStrategy is a "long-term HODLer."
Technical Market Outlook:
The ETH/USD pair has made a local low at the level of $1,806 and is trying to bounce above the 100 and 50 MA. The local short-term trend line resistance located around the level of $1,916 is still preventing the bulls to break out higher. The intraday technical resistance is seen at $1,915, but the key short-term technical resistance is located at $1,963. Only a sustained breakout above this resistance level will open the road towards the swing high seen at $2,140. The strong and positive momentum on the H4 time frame chart supports the short-term bullish outlook for the Ethereum as long as the level of $1,786 is not clearly broken.
Weekly Pivot Points:
WR3 - $2,091
WR2 - $1,981
WR1 - $1,938
Weekly Pivot - $1,870
WS1 - $1,829
WS2 - $1,760
WS3 - $1,650
Trading Outlook:
The Ethereum market has been seen making lower highs and lower low since the swing high was made in the middle of the August 2022 at the level of $2,029. This is the key level for bulls, so it needs to be broken in order to continue the up trend. The key technical support is seen at $1,368, so as long as the market trades above this level, the outlook remains bullish.
