Grayscale Points at Increased Institutional Interest in Crypto – Price Analysis, 10 Aug 2020
Grayscale Investment Trust has revealed that there is an increased institutional interest in cryptocurrency. According to a recently published tweet, Grayscale's assets under management, invested in major cryptocurrencies, have reached $5.6 billion:
As a comparison, Grayscale had $2.2 billion invested in cryptocurrency in the first quarter of 2020.
One of the reasons behind the massive inflow of institutional money is the declining trust in the long-term viability of the US dollar. According to Anthony "Pomp" Pompliano, a well-known cryptocurrency bull and co-founder of Morgan Creek Digital Assets fund, the US central bank's inflation efforts are likely to 'end disastrously' and that 'Bitcoin is going to be the largest winner out of all assets since it is the most volatile'.
After the consolidation during the last couple of days, the rally in the crypto market is trying to start over. At the time of writing, according to Coin360.com, one Bitcoin costs €10,144.86 (+3.00%), one Ethereum – €334.98 (+2.10%), and one Litecoin – €49.22 (+1.95%):
Source: Coin360.com (Daily crypto market performance)
Now let's check the price charts of the major cryptocurrencies against the euro.
In the daily chart (1D), BTC/EUR has already surpassed the level of the local high from February 2020:
Therefore, the price of Bitcoin is likely to continue to rise.
In our estimation, if the positive sentiment remains, then BTC/EUR will hit the 123.6% Fibonacci extension level or €11,133.64.
However, the bears will try to stop the price increase. That's why some pullbacks may occur on the way to €11,133.64. In this case, we consider the level of the local high from February, or €9,698.15, as a solid support level for Bitcoin.
In the weekly time frame (1W), ETH/EUR has formed a sequence of bullish candlesticks with ascending local lows – a signal that the uptrend remains in place:
However, it is worth noting that the local highs are not increasing. We view it as an indicator that the bulls are facing some resistance. Thus, ETH/EUR may consolidate for some time before the uptrend resumes.
In the daily time frame (1D), LTC/EUR has finally risen above the 200-day moving average:
In our estimation, this is an initial signal that the bearish sentiment is changing into a bullish one.
We believe that the momentum is likely to pick up and LTC/EUR will exit the Falling Wedge successfully:
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