BTC (weekly candles). Today we will take a closer look at some of the scenarios for the development of events on a higher timeframe, which were mentioned in the review of December 10. The graph shows that the growth of the penultimate weekly candle rested against the dynamic resistance level represented by the 21 EMA 1W, which led to a pullback of the instrument to the retracement level of 0.5 Fibonacci ($ 49,113), under which Bitcoin is consolidating at the time of this writing.
Closing this week above the 21 EMA 1W ($ 51,960) will significantly strengthen the bulls’ positions and increase the chances of implementing an optimistic scenario with a quick recovery and a continuation of the uptrend. An additional signal for this development should be the RSI line crossing the middle line of the Bollinger Bands indicator plotted on the RSI, which happened on August 2, marking a medium-term bullish trend.
The second scenario will be a longer re-accumulation of the asset, which took place in May for 9 weeks, when the current weekly candle closes below the Fibonacci retracement level of 0.5 ($ 49,113). Then the instrument will likely decline to 50 EMA 1W ($ 44,400), followed by bitcoin consolidation in the $ 44,400 – $ 53,800 range.
ETH. Ether has decreased its value as a pair to BTC by 0.85% in the last 24 hours. The asset is consolidating below the resistance level at $ 4,000, the nearest support level is $ 3,800.
Florida Governor Ron DeSantis presented a new draft budget for 2022-2023, which proposed allowing businesses to pay government fees in cryptocurrency and use blockchain to improve urban infrastructure.
DeSantis also announced that the state will launch pilot programs to study the use of blockchain technology in payments under the state program of medical assistance to those in need and in the registration of vehicles. The latter will be hosted by the Florida Department of Highway and Motor Vehicle Safety.
Florida is gradually becoming a crypto-friendly jurisdiction in the US, as Miami, one of the major cities in the state, is actively promoted as the “world capital of bitcoin and cryptocurrencies.” Florida, however, is not the first state to consider the use of cryptocurrencies and distributed ledger technology. Wyoming legislators plan to use blockchain to increase transparency and accountability in the way public funds are spent.
It’s also worth noting that MiamiCoin, which was launched by the city of Miami in August 2021, added $ 21 million to the city budget by mid-November. I believe that the positive experience of states using cryptocurrencies and blockchain to solve practical problems and attract investment capital will push other administrative and political units to similar policies, which will significantly expand the geography of “cryptocurrency centers” in the United States.