The Recent Rally Of Bitcoin Had Been Capped, The Digital Yuan (eCNY) Has Received Upgrades
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Crypto Industry News:
China's central bank digital currency (CBDC) - the digital Yuan or eCNY - has received upgrades to give it smart contract functionality with a series of newly revealed use cases.
The smart contract feature has been launched in the Meituan app, a Chinese app offering retail and food delivery services, as reported by local cryptocurrency website 8btc.
When Meituan users place an order and pay using their e-CNY wallet, a smart contract is triggered that searches for keywords and purchased items in the order. If a user buys something from the list of keywords for the day, they are entered into a draw for a share of the prize.
The prize is a share of a "red envelope" known locally as a hongbao, containing 8,888 Yuan, worth just over $1,300. Hongbao are small packages traditionally used to give money around Chinese New Year as a gesture of wishing good luck.
Technical Market Outlook:
The BTC/USD pair keeps trading above 100 MA, nevertheless the recent rally had been capped at $23,784 after the Bearish Engulfing candlestick pattern was made at H4 time frame chart. A breakout above the level of $25,000 is needed in order to extend the rally towards the key short-term technical resistance seen at $25,442. Please notice the growing bearish Divergence on the H4 time frame chart. On the other hand, any breakout below the range low ($22,330) would extend the corrective cycle towards the level of $21,466 (November 5th high). Strong and positive momentum support the short-term bullish outlook, however, the market is trading in a extremely overbought conditions.
Weekly Pivot Points:
WR3 - $24,368
WR2 - $23,535
WR1 - $23,112
Weekly Pivot - $22,702
WS1 - $22,278
WS2 - $21,869
WS3 - $21,035
Trading Outlook:
Despite the recent rally, the down trend on the H4, Daily and Weekly time frames continues without any indication of a possible trend termination or reversal. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. The gamechanging level for bulls is located at $25,442 and it must be clearly violated for a valid breakout in the longer term.
Relevance up to 09:00 2023-01-27 UTC+1 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
