As the price of bitcoin rose to a new high in 2020, according to Arcane Research, open interest in CME Bitcoin (BTC) futures increased to $ 1.16 billion dollars, making it the world’s largest bitcoin futures market. This indicates that institutional investors are relatively unaffected by the recent sharp correction in the Bitcoin price.
Guggenheim Partners has become the newest and largest institution on Wall Street that wants to invest in bitcoin.
Guggenheim has requested permission from the Securities and Exchange Commission (SEC) to invest up to 10% of the net worth of the Bitcoin Large Opportunity Fund through the Grayscale Bitcoin Trust. The fund currently has $ 5.3 billion in assets, allowing Guggenheim to buy $ 500 million or more of Bitcoin.
Institutional investors’ appetites grow even as bitcoin approaches its full-time high, a testament to their confidence in the long-term history of digital assets.
Raul Pal, CEO of Global Macro Investor and CEO of Real Vision, told Cointelegraph that Bitcoin’s more conservative goal is to grow to $ 150,000 by November 2021. If a large amount of institutional money continues to flow into the cryptocurrency area, Bitcoin could rise to $ 250,000. Pal added.
Cryptocurrency’s long-term fundamental improvements continue, but prices may continue to fall in the short term, and investors are likely to see each withdrawal as a buying opportunity.
Let’s break down the maps of the five best digital currencies to see what opportunities there are.
Bitcoin / US dollars
In a strong uptrend, bulls usually buy on the decline to the 20-day exponential moving average. The long tails of the candles on 26 and 27 November show that the bulls are buying bitcoin (BTC) aggressively at lower levels.
Bullish moving average and relative strength index (RSI) are in positive territory, indicating that bulls are in control.
However, the bears will try to stop the current bullish move to $ 18 210.77, 61.8% Fibonacci retracement level for the recent decline. If the price falls below this resistance, there may be several days of movement within the area.
In contrast, if the bulls manage to push the price above $ 18,210.77, the bitcoin / dollar pair could rise to $ 19,459.22 and then to the magic number of $ 20,000. A breakdown of this resistance could set it in motion. the next upstream phase.
This upward trend will disappear if the price falls below the current level and falls below $ 16,000.
The 4-hour chart shows that the return from the lower levels hit a wall of around 50 simple moving averages, below the 61.8% Fibonacci retracement level of $ 18,210.77.
If the bears can drop the price below $ 17,500, $ 16,400 will be checked again for short. If the bulls start buying again at lower levels, several days of range may follow.
Conversely, if the bulls manage to push the price above $ 18,210.77, $ 19,459.22 may be retested.
ETH / USD
The long tails of the candles on November 26 and 27 show that the bulls aggressively bought up the decline in Ether (ETH) to the $ 488,134 breakout level. This indicates that the feeling is still positive.
Bullish moving average and RSI are in positive territory, indicating a bullish advantage. However, buyers are unlikely to have an easy route to beat $ 625. The Bears will try to stop the current rally at 61.8% Fibonacci retracement at $ 569,019.
If the price falls below this resistance and breaks the 20-day EMA ($ 512), $ 482 will be retested on the charts.
Conversely, if the bulls could push the price above $ 569,019, the ETH / USD pair could rise to $ 592,674 and then to $ 622,807. A break at this level could start the next phase of the uptrend, which could push the pair up to $ 800.
The 4-hour chart shows that bears protect 50-SMA. If the price falls below the current level and falls below $ 520, $ 482 will be re-checked on the cards.
But if the bulls manage to push the price above $ 569,019, the move could rise to $ 592,674 and then to $ 622,807.
Traders can monitor the RSI, because if it continues above 60, it will indicate that the bulls are back in the lead. On the other hand, if the RSI falls from 60, it will indicate resistance at higher levels, and this may lead to more days of movement within the range.
ADA / US Dollars
On November 26, Cardano’s ADA was adjusted to $ 0.199845, just above the 78.6% Fibonacci retracement level of $ 0.1173063. Usually, such a significant decline reduces the likelihood that the trend will continue.