Bitcoin Legitimacy Grows as Facebook’s Coin Prepares to Launch

Libra, Facebook’s attempt at joining the crypto world is raising the legitimacy of digital assets and Bitcoin and other cryptocurrencies are surging.  Facebook’s digital coin is set to launch on Tuesday morning and already has key partnerships with Visa, Mastercard, Paypal and Uber.  This will allow for in-app purchases and deliver a strong boost to mainstream commerce acceptance.

Libra, will be pegged to a basket of real currencies, hoping to limit some of the volatility we have seen in the past two years.  It will prove difficult to be a stablecoin, but anything that increases the adoption of digital assets will be welcomed by the crypto world.

Price action on the Bitcoin daily chart shows today’s rally made a 13-month high.  If bullish momentum continues, the psychological $10,000 level should provide initial resistance.  Price could potentially form a bearish butterfly pattern at the $10,146 level.  Point D is targeted with the 200.0% Fibonacci expansion level of the X to A leg and the 1.618% Fibonacci expansion of the B to C move.  If valid, we could see a bearish reversal target the $9,600 level.  If the potential bearish Butterfly pattern is invalidated, the $11,828 region would be the next major resistance level.

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Ed Moya

Ed Moya

Senior Market Analyst at OANDA
With more than 20 years’ trading experience, Ed Moya is a market analyst with OANDA, producing up-to-the-minute fundamental analysis of geo-political events and monetary policies in the US, Europe, the Middle East and North Africa. Over the course of his career, he has worked with some of the world’s leading forex brokerages and research departments including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including BNN, CNBC, Fox Business, and Bloomberg. He is often quoted in leading print and online publications such as the Wall Street Journal and the Washington Post. He holds a BA in Economics from Rutgers University. Follow Ed on Twitter @edjmoya ‏
Ed Moya