BTC/IOTA long-term resistance has become supportBTC/IOTA
Technical: Unfortunately, the pennant from the previous analysis broke to the downside while the entire crypto market fell sharply. When comparing Iota to Bitcoin, we have experienced a much stronger growth on Iota's side recently. We are bouncing off strongly from the support at 3500 Sat, which has been the resistance for almost 2 years now. Currently, the price is at 3700 Sat and moving upwards again. Bullish divergence could drive the price much higher while being support by 20-day EMA. Touching the new resistance at 4300 should be likely, if not breaking through in the coming weeks on the way to the next strong resistance at around 5400 Sat.
Total BTC Dominance is currently at around 50.5%. It could bounce here probably leading to another test of the new support at 3500 Sat.
Fundamental: The progress of the Iota Ecosystem is astounding. Chrysalis part 2, NFTs and Smart Contracts will enable endless use-cases combined with a zero-fee environment. The energy consumption of Iota is by far less than what it takes to transact Bitcoin - around 5 million transactions one could do for the same energy it consumes for a Bitcoin transaction right now (1 Iota transaction uses 0.112Wh). The confirmed TX after the Chrysalis update can reach 1000+ TPS. Furthermore, since the supply of tokens does not increase as it does for most other coins which have miners, we could soon reach a stage in which price keeps going up, regardless of the correlation with Bitcoin. The demand will increase exponentially, once we see Iota being used to send data & pay in the m2m economy.
This is no trading advice.
Good luck!
