Institutional Expansion in Crypto Continues – Analysis, 22 Mar
The expansion of institutional investors in the crypto industry continues. On March 16th, Visa CEO Alfred Kelly said the payment system was trying to “enable the purchase of Bitcoin on VISA credentials” and “working with some Bitcoin wallets to allow Bitcoin to be translated into a fiat currency.”
On March 17th, in an internal memo, Morgan Stanley told its financial advisors that it was launching access to funds that enable Bitcoin ownership for its clients with at least $2 million in assets held by the company. The US investment bank’s clients will have access to two of the Galaxy Digital funds and a third one which is a joint effort from asset manager FS Investments and bitcoin company NYDIG.
On March 18th, a report published by Deutsche Bank highlighted that “Bitcoin’s market cap of $1 trillion makes it too important to ignore.” Moreover, the bank experts stated that “as long as asset managers and companies continue to enter the market, Bitcoin prices could continue to rise.”
On March 19th, the Securities and Exchange Commission of Brazil (CVM) gave the green light to the very first Bitcoin ETF in Latin America:
Given all this positive news, it seems that the current market consolidation is just a short break before the next pump. At the time of writing, according to Coin360.com, one Bitcoin costs €48,547.81 (-0.32%), one Ethereum – €1,509.98 (+0.55%), and one LINK – €24.61 (-1.80%):
Source: Coin360.com (Daily crypto market performance)
Now let us analyze the price charts of the leading cryptocurrencies against the euro in the major time frames.
In the weekly chart (1W), this past week BTC/EUR formed a small bearish candlestick:
As can be seen from the chart, the local high of the bearish candlestick remained below the local high of the previous candlestick – a signal that the bulls were not strong enough to push the price of the cryptocurrency to a new all-time high.
However, the local low of the bearish candlestick did not drop below the local low of the previous candlestick – a signal indicating that, although the bears were able to deter the bulls, they were still not able to revert the trend.
We can draw a conclusion that in the weekly chart, BTC/EUR is just consolidating.
In the daily chart (1D), it seems that BTC/EUR is preparing to resume its journey within the Ascending channel (uptrend):
The potential uptrend renewal is supported by the 30-day Moving Average (MA 30) and the trend line.
In the 4-hour chart (4H), ETH/EUR is consolidating at the 30-day Moving Average:
We stick to our previous point of view that sooner or later, the price of Ethereum will renew the upward movement within the Rising Broadening Wedge.
From a technical point of view, the 90-day Moving Average (MA) and the lower line of the wedge will serve as solid support for the price.
Based on the high correlation between the prices of the two cryptocurrencies, we believe that Bitcoin and Ethereum will resume the uptrend almost simultaneously.
Today, we will extend our previous analysis of LINK/EUR once again. As we have already seen, the price of Chainlink has exited the Bullish Flag and is trying to renew the uptrend:
After exiting the flag, LINK/EUR formed a local high above the upper line of the flag (step 1), then it retested the upper line (step 2). After that, the price of the cryptocurrency rebounded, and now we are in phase 3.
If LINK/EUR surpasses the local high from step 1 or the level of approximately €26.85, it will be the right moment (from a technical point of view) for traders to open some long positions.
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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.