Bitcoin has done exceedingly well in its first major crisis. It has outperformed gold, US equities and crude oil by a wide margin in 2020. This is likely to grab the attention of institutional investors who want to diversify their portfolio away from traditional assets. Even if a few institutional players allocate a small portion of their portfolio to Bitcoin, the crypto market is likely to skyrocket higher.
The Chicago Mercantile Exchange, or CME, data suggests that institutional investors might have already started building their positions in Bitcoin. The number of large open interest holders rose to 66, which is a new record. Similarly, Bitcoin futures and Bitcoin options open interest hit a new high recently. These suggest that the institutions are actively trading in Bitcoin derivatives.
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Bitcoin’s chart shows that the trend is up. However, the bulls are finding it difficult to propel the price above the $10,000 level. This suggests that the bears are aggressively defending this level.
After repeated failures to clear this level, the short-term traders are likely to book profits that can drag the price to the next support at the 20-day EMA. The RSI has also formed bearish divergence, which suggests a pullback might be around the corner. Nevertheless, as the trend is up, dips should be viewed as buying opportunities. Traders can wait for the price to rebound off the 20-day EMA before initiating long positions.
The first target objective is a move back to $10,000 and if that is cleared, a rally to $10,500 is also possible. This level is again likely to act as a strong hurdle but if crossed, it will signal the start of a long-term uptrend.
The first signs of a change in trend will be signalled when the bears sink the BTC to USD pair below the support line of the ascending channel. If this support cracks, a drop to $8,100 is likely.
Lastly please check out the advancement’s happening in the crypto currency world.
Enjoy the issue!
MAJOR CRYPTO NEWS HIGHLIGHTS IN THIS WEEK’S WEEKLY
FEATURING IN THIS WEEKS EDITION
– 4C Trading
– TPX Network
– LCG ENergy
CRYPTO.COM ROLLS OUT VISA CARD TO 31 EUROPEAN NATIONS
Crypto.com said Friday it has begun shipping its crypto-to-fiat card, the MCO Visa, across the European Union…
INSTITUTIONAL INVESTORS PUSH CME BITCOIN TRADING PRODUCTS TO RECORD HIGHS
Chicago Mercantile Exchange (CME), the world’s leading financial derivatives marketplace, is seeing new record highs for its Bitcoin trading products…
VISA PATENT FILING WOULD ALLOW CENTRAL BANKS TO MINT DIGITAL FIAT CURRENCIES USING BLOCKCHAIN
Visa looks to be laying the groundwork for a future in which fiat currencies such as the U.S. dollarcould be easily turned into a central bank digital currency (CBDC)…
RICH DAD POOR DAD AUTHOR SAYS BITCOIN WILL RISE TO $75,000 BY 2023 AS US ECONOMY IS DYING
The author of the “Rich Dad Poor Dad” personal finance book series, Robert Kiyosaki, says he believes that Bitcoin will surge to $75,000 as the US economy withers amid the global pandemic…
NVIDIA ACCUSED OF MISREPRESENTING MORE THAN $1 BILLION IN CRYPTO MINING BIZ
In a newly amended lawsuit, documents have shown that investors are accusing Nvidia of not revealing the amount of money they raised by selling graphic cards to various crypto mining firms…