Some of the most prominent investors continue to back cryptocurrency and the blockchain technology. Hong Kong billionaire Li Ka-shing has invested in the latest funding round of Intercontinental Exchange’s (ICE) crypto trading platform Bakkt through his venture capital firm Horizon Ventures.
Similarly, Wall Street investor Bill Miller, who had invested in Bitcoin previously, expects the leading cryptocurrency to be worth either a lot more or zero.
According to Miller, he likes to keep cryptocurrencies in his portfolio because their performance is decoupled from the traditional asset classes. Though an active investor, he considers himself a “Bitcoin observer,” but not a “believer” yet.
On the other hand, the Winklevoss brothers are big believers in cryptocurrencies. They expect the market capitalization of Bitcoin to cross that of gold in the future. Because of that, they continue to support the idea of a Bitcoin exchange-traded fund (ETF).
The recent Ethereum Classic (ETC) 51 percent attack has many worried whether the same can be happen to Bitcoin (BTC) in the future. The opinions are divided, but such challenges are to be expected in a new asset class. This will only encourage the participants to find solutions to avoid such attacks in the future.
Bitcoin has been trading near the neckline for the past two days. The bulls have been unable to complete the inverse head and shoulders pattern, but they have not given up much ground either. This is a positive sign.
Both moving averages are flattening out, which suggests a change in trend. If the BTC/USD pair climbs above $4,255, it will signal the formation of a short-term bottom. Hence, we have recommended a buy in one of our earlier analyses. The pattern target on a break out of the inverse head and shoulders pattern is $5,500.
If the bears sink the digital currency below the right shoulder, the sentiment will turn bearish and can result in a retest of the low of $3,236.09. If this support breaks, the downtrend will resume.
The bears have been defending the $167.32 mark for the past seven days. If Ethereum breaks down of the uptrend line and the 20-day EMA, it can dip to the 50-day SMA at $120.
On the other hand, if the bulls break out of $167.32, the ETH/USD pair can rally to the next level of $225 and above it to $249.93. Hence, traders can buy on a close above $167.32 and keep a stop loss of $130.
The 20-day EMA is trending up and 50-day SMA is flat, which shows that the downtrend is over. Therefore, traders should look to buy on dips, as long as the price remains above the 50-day SMA. A break of this moving average can result in a drop to $100 and below that to $83.
Litecoin has stayed above the neckline for the past three days but hasn’t been able to move higher. This shows a lack of buying at higher levels.
However, if the bears fail to break below the neckline and the 20-day EMA within the next couple of days, buyers will likely step in. The targets to watch on the upside are $47.246 and $56.910. The stop loss can be kept at $27.5, which can be trailed higher as the price moves up.
We are bullish because the LTC/USD pair has formed a reversal pattern and the moving averages have completed a bullish crossover. All these point to a probable bottom at $23.1.
Our view will be negated if the cryptocurrency slips below the moving averages and the $27.701 mark. The downtrend will resume on a fall below $23.1.