Crypto Industry News:
A new study has revealed a staggering rise in cryptocurrency adoption across Nigeria, fueled by limited access to inexpensive fiat-based financial services in Africa. Many Nigerian citizens have started to use cryptocurrencies as a viable alternative to asset storage and transfer.
According to the report, 35% of the Nigerian population aged 18 to 60 - or 33.4 million people - owned or traded cryptocurrencies in the past six months. Of these people, nearly 17.36 million (or 52% of Nigerian crypto investors) have allocated more than half of their assets to cryptocurrencies.
One of the main reasons investors around the world are trying to diversify traditional cryptocurrency assets is to counteract rising fiat inflation. For example, last month a survey of UK investors was conducted where most found tokens safer and more secure than traditional investments such as gold, oil, stocks and real estate.
The report further highlights peer-to-peer trading as the most popular method of converting fiat to crypto assets among Nigerian investors. Approximately 23.38 million Nigerians, or 70% of existing cryptocurrency investors, will increase their cryptocurrency investments over the next six months.
Naira, the national fiat currency, has fallen by more than 209% in the last six years, one of the key factors that local investors pay attention to deflationary assets like Bitcoin.
Technical Market Outlook:
The ETH/USD pair has broken below the level of $3,012 (50% Fibonacci retracement level) and made a new local low at $2,951. The next target for bears is seen at the level of $2,878 (61% Fibonacci retracement level). This is the line in sand for bulls. The weak and negative momentum on the H4 time frame chart supports the short-term bearish outlook. The nearest technical resistance is seen at $3,045 and $3,146.
Weekly Pivot Points:
WR3 - $3,919
WR2 - $3,762
WR1 - $3,490
Weekly Pivot - $3,319
WS1 - $3,064
WS2 - $2,873
WS3 - $2,612
Trading Outlook:
The market bounce was stopped at the level of $3,512, which was the key Fibonacci retracement for bulls. The bears are now in control of the market and are heading lower, towards the level of $3,000 first, then lower towards $2,941.