Institutional interest in Bitcoin (BTC) has increased in recent months, according to data from the Grayscale Bitcoin Trust. If the trend continues at the same pace, by March 2021, GBTC would have bought 75% of the newly extracted Bitcoin during the period. By then, its total share of the top-ranked kryptonite currency in CoinMarketCap would increase to 3% of the total supply in circulation. If this happens, it could be a great stimulus for investors who believe that institutional investment is the key to mass adoption.
Reddit’s co-founder, Alexis Ohanian, has said that he has one percent of his wealth in crypt coins and does not want to change it. Ohanian believes Bitcoin is a hedge due to the fact that several „Wall Street GIs“ have now entered crypto space.
The long-term fundamentals of cryptomonies have improved, but the price has yet to catch up. Can the upward movement resume this week? Let’s look at the charts of the five major cryptos that could offer trading opportunities this week.
Bitcoin (BTC) has been trading in an uptrend, which shows that the medium term trend is upwards. However, the short term has stalled as the price has fallen below both moving averages.
The Immediate Edge, The News Spy, Bitcoin Code, Bitcoin Billionaire, Bitcoin Trader, Bitcoin Circuit, Bitcoin Era, Bitcoin Profit, Bitcoin Evolution, Bitcoin Revolution pair has formed a symmetrical triangle, which usually acts as a continuation pattern. The 10-day exponential moving average is gradually tilting and the relative strength index is just above 50 levels, suggesting a balance between supply and demand.
While the best way to trade a symmetrical triangle is to wait for the price to break or collapse from it, another possible strategy is to buy near the triangle’s support line, as this helps to maintain a close stop-loss.
If the bearish side sinks the price below the triangle’s support line, it will be a first sign that the upward trend could be in danger. A break below the channel will confirm a change in trend. However, the end of an uptrend does not mean that a downtrend has started, as prices could remain within a range. The downtrend could start with a break below $8,130.58.
The 4-hour chart shows that the bulls are aggressively buying their way to the support line of the symmetrical triangle. This is a positive sign, as it confirms demand at the lower levels. Rallies may now attempt to bring the price to the resistance line of the triangle, which is near USD 9,850.
A break above USD 9.350 could indicate a resumption of the upward movement. This may offer a buying opportunity to traders with a stop-loss of USD 8,950, which is just below the triangle’s support line.
As the pair moves upwards, stops can be followed further upwards. Traders can set aside partial gains close to USD 9,850 and give the remaining position some room to maneuver because a break in the triangle will give a target pattern of USD 11,778.