Daily Market Update & Thoughts: January 22
#BTC (weekly timeframe). It should be understood that the cryptocurrency market repeats the movements of the American stock exchange and is not alone in its correction. For example, the S&P 500 index has decreased by more than 8% since the beginning of the year, and its support zone is a couple of percent below the current levels. We think that somewhere in the area close to the support zones of the main Wall Street indices, they will start to rebound, which will be repeated by cryptocurrencies.
The weekly candle dropped below the exponential moving average EMA 75 W, which previously acted as a strong dynamic support level during the corrections in June and July. So far, the reaction of buyers to the price level of $35,900 considered in yesterday's review is rather weak. The next likely rebound zone is the EMA 120 W area, approximately coinciding with the support block at $32,750. If a buyer appears at this level, Bitcoin will go sideways in the $33,000 - $39,500 price corridor.
#ETH. The fall of the asset against #BTC was 5.1% over the past 24 hours. Ethereum continued to decline towards the support level in the $2,475 area, the next potential area of interest for buyers is $2,150.
Meta plans to create NFT services for Facebook and Instagram social networks, with the help of which users will be able to create and place NFT objects in their profiles (1).
Earlier at the end of last year, the head of Instagram, Adam Mosseri, said that Meta was studying the market for non-mutual tokens and was considering introducing the technology into its platforms, but then he stressed that the company could not announce anything concrete yet.
Meta has already launched its cryptocurrency wallet called Novi, which has been functioning despite previous problems with lawmakers. The tech giant is also working with Coinbase and Paxos to create a wallet as part of the company's NFT strategy.
The founder of Meta has repeatedly mentioned that the NFT mechanism can be useful in creating a market for digital goods in the future metaverse. I believe that the company will subsequently create its own marketplace for non-fungible tokens based on Facebook and Instagram, and the social platforms themselves will act as a kind of testing ground for testing new technology and identifying user interest in it. Let me remind you that Facebook has about 2.91 billion active users, and the promotion of NFT through the largest social network in the world will definitely attract new stakeholders to the cryptocurrency industry.
The US stock market ended Friday trading lower amid negative dynamics from the consumer services, raw materials and technology sectors.
At the close of the New York Stock Exchange, the Dow Jones fell 1.3% to a one-month low, the S&P 500 was down 1.89% and the NASDAQ Composite fell 2.72%.
The total capitalization of the cryptocurrency market fell by 11.5% over the past day, the dominance of bitcoin increased by 3.2%. Under these conditions, trading in the cryptocurrency market is still better to wait, it remains only to wait for signs of a local correction stop.
Techspeedy does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.