Bitcoin regains its position after a slight decline at the end of last week amid a correction and profit-taking after an unsuccessful attempt to update the historical high above $62,000. Demand for the cryptocurrency returned after the international company Visa Inc. said that its payment network will use USD-backed stablecoins. The fact that blockchain technology continues to gain popularity is forcing companies like Visa to use it in their transactions. According to a statement from the San Francisco-based payment giant, as part of the pilot program, Visa uses USD Coin to conduct transactions on the Ethereum network using the platform Crypto.com and Anchorage - a digital asset bank. This year, Visa plans to offer this service to more of its partners. Against this background, bitcoin returned to the area of $58,000, where it continues to trade at present.
As for the technical picture of BTC: support levels in the region of $50,000 worked perfectly last week, which allows maintaining the upward potential of the world's first cryptocurrency. Further growth will depend entirely on the behavior around $58,500. A breakout of this range will open a direct path to the maximum of $61,600, where a completely different trade will begin. There, it will be possible to follow the active opposition already from the sellers, who protect this level in every possible way to prevent the continuation of the upward trend. An unsuccessful breakout of $61,600 can form a double top, which will lead to the formation of a very powerful signal to sell bitcoin, so be careful at this level. If the bulls do not manage to get above the resistance of $58,500, then the pressure on the cryptocurrency will also increase, since from this range you can build the lower limit of the new descending channel from March 13. In this case, the bears will target the support of $54,700, a breakout of which will quickly dump bitcoin to the lows at $50,200 and $44,900.
The fact that financial companies are beginning to use cryptocurrencies and blockchain projects once again confirms the real future of this direction. Although many are still skeptical about the mass adoption of blockchain and cryptocurrencies – this can no longer be avoided. Blythe Masters, the former chief executive of JPMorgan Chase & Co., said in an interview recently: "While bitcoin and other cryptocurrencies remain primarily a vehicle for speculation and are unlikely to replace alternative store of value anytime soon, the potential is enormous."
Jack Forestell, Visa's chief product officer, said the company's decision to introduce USDC is a step in the company's quest to serve financial technology businesses. "Fintech companies that use cryptocurrency need partners who understand their business and the complexities of digital currency. Today's announcement marks an important milestone in our ability to meet the needs of fintech companies," the statement said.
Despite political pressure, large investment companies continue to grow, hiring rather large figures as consultants. One River Asset Management, a $2.5 billion company, has hired former SEC chairman Jay Clayton as an advisor, boosting confidence in the emerging asset class. Clayton will be one of three advisors to One River founder and CEO Eric Peters. It is worth noting that it was under Clayton, who left the SEC in December 2020, that the regulator decided that bitcoin and ether are not securities, eliminating the problem in creating derivatives for this asset class.
