Paris-based asset management firm Napoleon AM has announced the launch of a specialized professional fund under French law, the Napoleon Bitcoin Fund. The fund would replicate the price of the cash-settled Bitcoin futures listed on the Chicago Mercantile Exchange.
According to the company, this is one of the first regulated products giving exposure to Bitcoin, with which institutional investors can diversify their portfolio.
While the firms are launching crypto products for professional investors, not every investor is confident about the future of Bitcoin. Billionaire investor Mark Cuban believes that BTC could never become a reliable currency because “it's too difficult to use, too easy to hack, way too easy to lose, too hard to understand” as well as too hard to assess and value.
However, he does believe that Bitcoin could become a financial asset as a collectible similar to gold and art.
Daily cryptocurrency market performance. Source: Coin360
While most firms are targeting the institutional investors, Swiss cryptocurrency financial firm Amun AG has received permission to offer various exchange-traded products to retail clients throughout the EU.
With a slew of products being launched for both institutional players and retail investors, the interest in the crypto space is likely to pick up. So, should investors view the current dip as a buying opportunity? Let’s analyze the charts.
Bitcoin (BTC) has dropped to the immediate support at $7,085.80. Both the moving averages are sloping down and the RSI is in negative territory, which suggests that bears are in command.
If the bears succeed in breaking below $7,085.80, the next stop is likely to be the recent lows of $6,512.01. We anticipate the bulls to launch a strong defense of this level. Nonetheless, if this support also cracks, the sentiment will turn sour and a deeper correction to $5,533.90 is possible.
BTC USD daily chart. Source: Tradingview
Conversely, if the bulls defend the support at $7,085.80, the BTC/USD pair might remain range-bound for a few more days. A break above $7,085.80 can carry the price to the downtrend line where we anticipate the bears to mount stiff resistance.
However, if the bulls can push the price above the downtrend line and sustain it, we anticipate a rally to $10,360.89. Therefore, the traders can initiate long positions as suggested in our earlier analysis.
The range in Ether (ETH) has tightened further. The bulls are attempting to defend the immediate support at $143.259 while the bears are defending the overhead resistance at $151.829.
ETH USD daily chart. Source: Tradingview
Though it is difficult to predict the direction of the breakout from a range, the down-trending moving averages and the RSI in the negative zone show that bears have the advantage. If they succeed in breaking below the $143.259 to $140 support zone, a drop to $131.484 is possible.
Conversely, if the bulls push the price above the overhead resistance zone of $151.829 to $157.50, the ETH/USD pair could pick up momentum. The short-term traders can initiate long positions as suggested in our previous analysis.
XRP has been holding above $0.22 for the past two days. However, the bulls have not been able to achieve a strong bounce off it, which is a negative sign. This shows a lack of urgency among the bulls to buy at these levels.
XRP USD daily chart. Source: Tradingview
Without ample buying support, the XRP/USD pair might dip below $0.22 and the uptrend line of the ascending triangle. A breakdown of a bullish setup is a bearish sign. Therefore, a break below the uptrend line can drag the price to $0.20946 and below it to $0.20041.
Our bearish view will be invalidated if the bulls carry the price above the overhead resistance at $0.23260. Such a move will indicate buying at lower levels. We might suggest long positions for the aggressive trader if the price sustains above $0.2326 for a few days.
Bitcoin Cash (BCH) has dipped to its critical support at $203.36. The failure to rebound off this support indicates a lack of aggressive buying. The 20-day EMA is sloping down and the RSI is in the negative zone, which shows that bears have the upper hand.
BCH USD daily chart. Source: Tradingview
If the bears sink the price below $203.36, a drop to $192.52 is likely. This is an important level to watch out for because if it cracks, the downtrend will resume.
Contrary to our assumption, if the BCH/USD pair bounces off the current levels or from $192.52 and rises above $227.01, it will indicate strength. Hence, we retain the buy recommendation given in our earlier analysis.
Litecoin (LTC) has gradually dipped closer to the support at $42.0599. Both moving averages are sloping down and the RSI is close to the oversold zone, which shows that bears are in command.
LTC USD daily chart. Source: Tradingview
If the bears sink the price below the support at $42.0599, the LTC/USD pair will resume the downtrend, with the next support at $36.
Alternatively, if the bulls defend the support at $42.0599, the pair might remain range-bound between $42.0599 and $50 for a few days. A breakout of $50 could carry the price to $66.1486.
EOS has declined to the immediate support at $2.5804. Failure to achieve a strong bounce off this level is likely to attract further selling that could sink the price below it. The next support on the downside is $2.4001. We expect a strong defense of this level by the bulls.
EOS USD daily chart. Source: Tradingview
Nevertheless, if the EOS/USD pair bounces off the current levels or from $2.4001 and breaks above the overhead resistance at $2.8695, it will indicate strength. Above $2.8695, the pair can move up to the downtrend line. The short-term traders could try to benefit from this rise by initiating long positions as suggested in our previous analysis.
After failing to rise above the overhead resistance at $16.50, Binance Coin (BNB) has dropped close to the critical support at $14.2555 in the past two days. While this is a negative sign, we are closely watching the developing bullish divergence on the RSI, which could signal a possible reversal.
BNB USD daily chart. Source: Tradingview
A bounce off the current levels will keep the BNB/USD pair range-bound for a few more days. The first sign of strength will be a break above $16.50. Though the 50-day SMA might offer some resistance, we expect the price to climb above it and reach $21.80.
Therefore, the traders can initiate long positions on a break and close (UTC time) above $16.50 with the stop at $13.50. Our bullish view will be invalidated if the bears sink the price below $14.2555.
Bitcoin SV (BSV) continues to trade near the support at $92.693. A consolidation near an important support level, without any meaningful bounce, usually increases the possibility of a breakdown.
BSV USD daily chart. Source: Tradingview
If the bears sink the price below $92.693, the decline can extend to the next support at $78.506. This is important support because if it cracks, the BSV/USD pair could drop to $38.528.
Contrary to our assumption, if the pair rebounds off the current levels and rises above the downtrend line, it could move up to $113.960. We will wait for the price to sustain above the 50-day SMA before turning positive.
After failing to rise above the overhead resistance at $0.056, Stellar (XLM) has dipped towards the support at $0.051014 in the past two days. This is a negative sign as it indicates that the buyers are not confident that a bottom is in place yet.
XLM USD daily chart. Source: Tradingview
If the bears succeed in breaking below the support at $0.051014, the XLM/USD pair will resume its downtrend. The next support to watch on the downside is $0.041748.
Conversely, if the price turns around from the current levels and rises above $0.056, a move to $0.060 is possible. Above $0.060, the traders can initiate long positions as proposed in our previous analysis.
In an uptrend, the bulls provide support at the 20-day EMA. That is what happened with Tezos (XTZ) as the drop on Dec. 10 found buying support just below the 20-day EMA. However, today’s price action shows profit-taking at higher levels.
XTZ USD daily chart. Source: Tradingview
The bulls will now try to push the XTZ/USD pair above $1.528758 while the bears will attempt a break below the 20-day EMA.
If the bulls are successful, a rally to $1.6555 and above it to $1.85 is likely. We anticipate the bears to offer a minor resistance at $1.6555 and a stiff resistance at $1.85. If the bears succeed in breaking below the 20-day EMA, a drop to the 50-day SMA is possible.
We do not see a buy setup with an attractive risk to reward ratio here. Hence, we are not recommending a trade at the current levels.
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 HitBTC exchange.