Price Analysis Jan 24: Btc, Eth, Xrp, Bch, Bsv, Ltc, Eos, Bnb, Xlm, Ada
The International Monetary Fund chief economist Gita Gopinath said in a panel discussion at the annual World Economic Forum (WEF) in Davos that Facebooks Libra was a major trigger that made people reconsider the status of the dollar as the reserve currency of the world. Brazil's Economy Minister Paulo Guedes, who was also a part of the panel, said that the Libra episode is just evoking a future digital currency.
In order to help policymakers understand the central bank digital currency (CBDC) better, the WEF in collaboration with some of the world's major central banks and experts from over 40 institutions have created the CBDC Policy‑Maker Toolkit. This will help the central banks understand the pros and cons of a CBDC and guide them through its design.
The WEF also announced the formation of a Global Consortium for Digital Currency Governance, which will provide a framework to regulate digital currencies, including stablecoins. This shows how the central banks and regulators around the world are gradually gravitating towards the new technology.
Daily cryptocurrency market performance. Source: Coin360
Ripple CEO Brad Garlinghouse meanwhile hinted at an initial public offering (IPO) within the next 12 months. He believes that many other crypto and blockchain firms are likely to go down the IPO route in 2020. Some firms believe that public listings on traditional stock exchanges might attract institutional investors who have been slow to enter the nascent asset class due to various regulatory concerns.
Though the crypto space is witnessing a lot of activity on the fundamental front, the price is yet to share the enthusiasm. Lets see if we find any buying opportunity after the recent weakness.
Bitcoin (BTC) dipped below the 20-day EMA at $8,350 today but quickly turned around. This shows that the bulls are buying on dips rather than panicking and dumping their positions, which is a positive sign.
BTC USD daily chart. Source: Tradingview
If the bounce sustains, the BTC/USD pair can move up to the 200-day SMA at $8,966, which is likely to act as stiff resistance once again. However, if the bulls can push the price above the 200-day SMA and $9,200 resistance zone, a rally to $10,360.89 is possible.