24.12.202107:36 Forex Analysis & Reviews: India postpones Digital Assets Bill, Visa to launch cryptocurrency cards

The cryptocurrency market is gradually growing. Bitcoin is showing its first bullish signals and some altcoins are returning to the upside zone. The gradual recovery of crypto-assets is supported by the fundamental news backdrop. Positive news has not impacted coin prices, but there is a strong possibility that in the longer term, these announcements contribute to a multiple increases in coin prices.

India postpones bill passage

The government of India has decided to delay the passage of a controversial cryptocurrency bill. Most experts believe that such a strict policy would have a negative impact on the acceptance of digital assets in the country. Investors were positive about the postponement of the regulation, but the possibility of it being passed in 2022 is still high. Despite this, it is good news at the end of 2021, which has removed additional excitement and volatility from the market.

Visa sets trend for 2022

The really positive news is the announcement of the Visa payment system. Representatives of the company, together with 60 cryptocurrency platforms, have launched full-fledged cryptocurrency cards. I believe this announcement was a major precursor to the global adoption of crypto-assets. While a lot of details and functionality of the future card are not completely known, we can state the fact that if 2021 is the year of coin institutionalization, then 2022 will be the year of global adoption of cryptocurrencies in everyday life.

In 2021, venture capital funds have poured about $30 billion into the crypto industry. It is more than in the previous five years. In 2022, this trend will be exacerbated and institutional investments will be followed by a significant share of retailers. It also suggests that the adoption of cryptocurrency payment cards will significantly transform the altcoin market. It is possible, that Bitcoin will continue to be institutionalized and new users will be looking for effective alternatives. So, in my view, the number of projects with a large-scale ecosystem will increase in 2022.

Bitcoin and cryptocurrency market not yet ready

As of 23 December, the total capitalization of the cryptocurrency market has barely passed the $2 trillion mark. Most coins are coming out of hibernation, but seller activity is still too low. The market follows the dynamics of Bitcoin, which is the cornerstone for the growth of all cryptocurrencies. The asset is showing an uptrend on the four-hour chart. However, in case the price bounces back from the upper limit of the narrow range of fluctuations, the flat trend can be considered to persist for the next few days.

However, the technical indicators contradict my position and point to the growing strength of the bullish momentum. The MACD has risen above zero and stochastic has formed a bullish cross and broken into overbought zone. The Relative Strength Index also shows an increase in purchases. With this in mind, the coin has chances to break the local wedge and enter the final $49k-$50.8k area of the wide $42k-$51.6k range. However, a successful breakout would only be a preparatory stage for a future recovery phase. Overall, the bitcoin market does not look ready for a full-blown bullish breakout and the start of a recovery period.