GB Market Commentary 08/12/2022
by Marcus Sotiriou
Bitcoin has held $16,800 despite the S&P 500 dropping significantly this week, which could be a sign of strength in the short term. However, technical analysis shown below suggests we could have some downside in the short term for Bitcoin.
Currently, Bitcoin is in a range from around $15,500 to around $18,200, with a mid-point of $16,900. Bitcoin has closed multiple 4 hours below this key mid-level of the range. This is a bearish sign because multiple closes below support, on the 4 hour time frame, suggests it will continue to fall. In addition, there is a key upwards sloping trendline that, if broken, could give an additional indication that we could revisit the low of $15,600. This trendline has not been broken yet however, so it is key to watch out for today. The bullish case for the short term would be a reclaim of the $16,900 level.
Progression has been made for Bitcoin as a payments network as Strike has now enabled money to be transferred on the Bitcoin Lightning Network to Africa. Strike is a digital payments platform built on Bitcoin’s Lightning Network, and has now added a feature called ‘Send Globally’, This feature allows you to transfer funds instantly and at a low cost to Kenya, Ghana, and Nigeria, before instantly converting the funds to local currencies and moving them to the recipients’ bank account.
According to a recent World Bank Migration and Development Brief, the cost of sending $200 averaged 7.8% in 2022 in Africa, which is the “most severely exposed to the concurrent crises.” There is clearly a need for a digital payments solution in low income countries such as Africa, and Strike is making waves into providing a solution using Bitcoin’s technology. This is exactly the kind of advancements the crypto industry needs to reach mass adoption, and therefore reduce volatility and speculation.