- Cryptocurrencies have been enjoying a weekend rally with Bitcoin rising to yearly highs.
- Critical caps have been broken, unleashing the upside, and Facebook’s reported launch of Libra and Testnet may be partially behind the move.
- Here are the next levels to watch according to the Confluence Detector.
Cryptocurrencies have been active over the weekend – and not for the first time. And this time, price action in digital coins has sent Bitcoin – the king – to above $9,200 and the highest in a year. Cryptos have already been on the move on Thursday and on Friday, making their ways to higher ground. However, the more substantial moves have come deep in the weekend – regardless of timezones.
Fresh reports about Facebook’s launch have added fuel to the fire. The social media behemoth will reportedly unveil the “Libra Association” as early as Tuesday, June 18th. Mark Zuckerberg’s company will run the entity from Geneva, Switzerland – a world-renowned financial hub. Facebook will announce its dedicated Libra Blockchain which will be back by the Libra Reserve – used to store assets – and grant low inflation, global acceptance, and fungibility – similar to central banks.
The entrance of one of the world’s largest companies – which has over two billion users – into the world of cryptocurrencies – helps legitimize the industry. Nevertheless, it is important to note that news of FB’s crypto launch have been floating around for some time – and the recent rally may be based on some Fear Of Missing Out (FOMO).
Some deny it is only FOMO and that Bitcoin will go as high as $400,00 based on real use.
Before we aim for another solar system, let us examine the current technical alignment. We can observe that cryptocurrencies have broken above considerable resistance lines which now turn into support – now turning into launching pads for the next bullish moves.
This is what the Crypto Confluence Detector shows in its latest update: