Bakkt recently completed its first acquisition of certain assets of futures commission merchant Rosenthal Collins Group (RCG). The much-awaited digital asset platform is expected to launch later in the year, according to Jeff Sprecher, CEO of the Intercontinental Exchange (ICE). Many expect institutional participation to increase with the launch of Bakkt.
Ex-hedge fund manager and CEO of Galaxy Digital, Michael Novogratz said in a tweet that he was surprised why the big macro funds did not invest one percent of their money in Bitcoin. If prices stabilize and there is clarity in regulations, we might see a few big funds make an entry into cryptocurrencies.
New York-based research company Fundstrat Global Advisors expects crypto prices to recover by the end of this year. They anticipate incremental improvements to boost prices.
While all other asset classes are matured, cryptocurrencies are still in their early stages of development and offer huge potential in the future. Binance CEO Changpeng Zhao believes that the Bitcoin revolution is only just starting. In a tweet, he said, “We are still early, the beginning of the beginning.”
A breakout of $4,255 completes a double bottom pattern, which has a target objective of $5,273.91. Hence, we might suggest buying about 30 percent of the desired allocation after the BTC/USD pair sustains above the downtrend line for a couple of days. The remaining position can be purchased above $4,255.
Our bullish view will be invalidated if the digital currency turns down from the current levels or the downtrend line and plunges below the low of $3,236.09. Such a move will trigger a number of stop losses and resume the downtrend. The levels to watch on the downside are $3,000 and $2,600.
The flat moving averages and the RSI just above the midpoint suggests a balance between the buyers and the sellers. We should get a decisive move within the next few days.
Let’s analyze the charts and try to predict which cryptocurrencies are showing the first signs of bottoming out.
Bitcoin (BTC) broke out of the 20-day EMA for the first time since Jan. 10. It is currently trading near the 50-day SMA. A bounce from the current level will carry it to the downtrend line, which has been a major hurdle since Nov. 24 of the previous year. If the price sustains above the downtrend line, it can move up to $4,255.
Ethereum (ETH) triggered our buy recommendation on Feb. 8. It is currently facing resistance at the 50-day SMA. If the bulls sustain the price above $122.60, we anticipate another attempt to break out of the overhead resistance within the next few days.
A breakout of the 50-day SMA and above it the 100-SMA $128.30 will increase the probability of a rally to $192.69 (200-SMA). Hence, we suggest traders hold their long positions with the stop loss at $100.
Our assumption will prove to be incorrect if the ETH/USD pair breaks down 20-EMA of $110.55 If the price sustains below it, ETHUSD can sink below $100.00, below which a drop to $83 is likely.
Litecoin (LTC) reached our first target objective of $47.00 on Feb. 10. This is a significant resistance; hence, we anticipate a minor correction or a few days of consolidation at this level. The traders who are holding long positions.
We anticipate a first support at 20-EMA 35.10 and 100-SMA support of 34.11. If the LTC/USD pair bounces off the support, the bulls will again try to break out of $47.00. If successful, the next target is $57.00.
The 20-day EMA has turned up and the 50-day SMA is gradually sloping up. The RSI reached the overbought level for the first time since December 2017. This shows a probable change in trend.
Our bullish view will be negated if the digital currency breaks below the moving averages. In such a case, it can drop to 33.20 and below it to the yearly low at 22.20.
original source: cointelegraph