Bitcoin, Ethereum, Ripple, EOS, Litecoin, Bitcoin Cash, Stellar, Tron, Binance Coin, Cardano: Price Analysis, Feb. 22
Institutional investors are getting more involved in the crypto space as fundamentals are improving.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Market data is provided by the HitBTC exchange.
The fundamentals of the crypto space have been improving over the past year. These developments are not going unnoticed by the institutional players. Though they have not committed huge sums of money, they have started testing the waters.
Crypto hedge fund Pantera Capital, which in its two previous crypto funds had managed to raise only $13 million and $25 million, has secured $130 million in funding out of the targeted $175 million. Similarly, the University of Michigan’s endowment plans to increase its investment in a crypto-focused fund managed by American venture capital firm Andreessen Horowitz.
Large traditional exchanges across the world have acknowledged the growing interest of institutional players in the crypto space and are coming up with new services. While Bakkt is the most awaited launch in the United States, exchanges in Europe are also preparing to take the plunge. Eurex, a Germany-based derivatives exchange operated by Deutsche Boerse, is planning to launch futures contracts for the top three cryptocurrencies.
With the groundwork being laid out for the institutional investors, is it a good time to buy for the long term or is this just a dead cat bounce?
Bitcoin (BTC) has been trading close to the psychological resistance of $4,000 for the past three days. Though the bulls have not been able to push prices higher, the cryptocurrency has not given up ground either, which is positive.
The 20-day EMA has started to slope up and the RSI is in the overbought zone, which shows that the bulls have the upper hand in the short term. However, the 50-day SMA still remains flat, which shows that the medium-term trend is yet to change.
The BTC/USD pair will face resistance close to $4,255, but if the bulls succeed in breaking out of this level, it will complete a double bottom pattern that has a target objective of $5,273.91. Hence, we might add to our existing long positions if the price sustains above $4,255. For now, the stops can be kept just below $3,236.09.
Contrary to our expectations, if the digital currency fails to rise above $4,255, it will remain range-bound between $3,236.09 and $4,255 for a few more days. Our bullish view will be invalidated if the pair plunges to a new yearly low.
Ethereum (ETH) has been consolidating for the past three days, without giving up much ground. This shows that the buyers are in no urgency to book profits and are buying on every small dip. This increases the probability of a move to $167.32 and higher. Therefore, traders can protect half of their long position with a tight stop. If the virtual currency pierces through $167.32, it can move up to $182.99. Hence, we shall give some wiggle room to the remaining half position and keep the stop at $125.
If the ETH/USD pair fails to scale the overhe