Analyses

Institutional Interest in Crypto Doesn’t Fade – Analysis, 29 Mar

Abstract Shapes Technical Analysis Bitvalex

This past week the crypto market remained quite volatile and struggled to find direction. As Federal Reserve Chairman Jerome Powell highlighted on March 22nd, crypto assets are still highly volatile and speculative. However, he also underlined that Bitcoin is essentially a potential substitute for gold rather than the dollar.

Interestingly, no matter what central bankers say about cryptocurrency, institutional interest in crypto doesn’t fade; it even intensifies. According to Bloqport, at least six well-known US asset managers are applying for Bitcoin ETFs at the moment:

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Source: Twitter

In an interview on Bloomberg, Soros Fund Management CIO Dawn Fitzpatrick highlighted the firm had also started investing in cryptocurrency infrastructure because it believes ‘Bitcoin is at an inflection point’ as fiat money debasement rises.

It seems that the famous saying in the crypto world - ‘Holding crypto is risky but not holding crypto is even risker’, has become a reality as more big players are joining the crypto sector because of fiat money devaluation fears.

After a volatile week, the Monday market starts with a slight correction. At the time of writing, according to Coin360.com, one Bitcoin costs €46,813.84 (-1.85%), one Ethereum – €1,435.96 (-1.63%), and one LINK – €22.73 (-2.13%): 

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Source: Coin360.com (Daily crypto market performance)

Now, let us analyze the price charts of the leading cryptocurrencies against the euro in the most important time frames.

BTC/EUR

In the daily chart (1D), at the end of last week, BTC/EUR dropped to the lower line of the Ascending channel (uptrend):

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The price received support at the lower line of the channel (trend line), the 30-day Moving Average (MA 30), and bounced off. There is a good chance that BTC/EUR will resume the uptrend within the channel.

In the 4-hour chart, BTC/EUR has formed a Bullish Flag (typical trend continuation pattern):

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If there is a breakout and the price chart exits the flag upwards, traders will start opening long positions.

ETH/EUR

In the 4-hour chart (4H), ETH/EUR has formed a chart pattern similar to a Symmetrical Triangle:

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Theoretically, a Symmetrical Triangle represents a period of consolidation before the price breaks out or breaks down.

We think that if BTC/EUR resumes the uptrend, then Ethereum will receive support, and ETH/EUR will exit the triangle in an upward direction. That is why Ethereum traders have to keep an eye on Bitcoin as well before taking any action.

LINK/EUR

Today, we will continue with the trading idea from our previous analysis of LINK/EUR. Although the price of Chainlink has exited the Bullish Flag, a buy signal has not occurred so far:

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We remind you that after exiting the flag, LINK/EUR formed a local high during step 1. After that, it retested the upper line of the flag (step 2). Later a rebound started (step 3). However, during the rebound, the price couldn’t surpass the previous local high – the local high formed during step 1.

That’s why, for now, we will abstain from opening a long position and will wait for a better opportunity.

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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.


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