The price of Bitcoin has jumped once again in the last few days from the 50-day moving average and from its lowest level near $ 50,000 psychological support, but the main confrontation between buyers and sellers will occur at high resistance levels. Which will probably force market bears to retreat.
to theReport QuintelGraph, data from Glassnode, China’s blockchain data analytics firm, shows a significant drop in bitcoin reserves worth about $ 8 billion at the CoinBase exchange. This reflects the fact that institutional investors or organizations are transferring capital to cold money wallets instead of saving their trading profits.
Hoodle capitalization of organizations will be a very positive positive point, as it continues to reduce the supply of available bitcoins. This can increase prices even if there is a lack of demand.
On the other hand, news reports indicate that bitcoin will not be accepted by institutional investors, for example, the National Wealth Fund of New Zealand has announced that one of its strategic products, KiwiSaver, will invest five percent of its assets in Bitcoin by October 2020. Quinn has allocated. This is a voluntary retirement plan for retirement. According to James Gregor, the company’s chief investment officer, their first purchase was made when the bitcoin was priced at $ 10,000. This means that when the price of Bitcoin rose to its all-time high of $ 6,825.44, the company made a profit of over 500%. Gregor added that Bitcoin could appear in a number of other cryptocurrencies in the next five years.
Robert Gutmann, CEO of New York Digital Investment Group, told Raul Paul in a recent podcast that he had received questions from the National Capital Fund about possible investments in Bitcoin. Paul also revealed that Temasek, a Singaporean investment company affiliated with the National Capital Fund, is collecting bitcoins directly from miners.
More investors will flock to the stock market if the stock exchange commission approves the Bitcoin exchange traded fund (ETF). Recently, Fidelity Investment Company, through the US Securities and Exchange Commission, applied for a bitcoin trading fund license and sought the approval of the authorities. More investors may enter the field if the US Securities and Exchange Commission approves the Bitcoin trading fund. This shows that traditional and older financial companies are also supporting Bitcoin.
The entry of different types of investors into the field of digital currencies is considered a positive sign in the long run. The price of bitcoin has retained its $ 50,000 support, while bitcoin derivatives market indexes seem as good as the futures market. By measuring the gap between futures and the cash market, traders can assess the uptrend of the market. Analysts had predicted that the expiration of $ 6.1 billion worth of Bitcoin options last Friday would put downward pressure on the price, but data from the derivatives market tells a different story. We now turn to the chart for further investigation and confirmation.
In a previous exclusive analysis of the Bitcoin price on March 20, we pointed to a correction after entering the resistance area of $ 56,500 to $ 62,500, and said that the price may move from this area to the Middle Channel. The third channel will experience a sudden collapse, and the support stations are $ 50,000 (near Middle Channel), $ 45,700 (blue support line), and finally $ 42,000, respectively.
As you can see in the picture, the price is beautifully and accurately seen according to the analysis of these levels. Even later, we said that watching the price jump from any of these support levels would provide a good opportunity for the oscillators to re-enter the market. These fluctuations also occurred according to the previous analysis and the price has jumped up from the blue support line.
If we want to first look at the long-term price trend, we refer to the logarithmic price chart in the weekly time frame and focus on the price movement within this channel and the price reaction to its various levels, including the middle channel. Note that the price, even in the long run, has responded well to the channel channel, which adds to the channel’s credibility. In the past, the price has rebounded after Midnight failed and then continued its long-term uptrend. If we look at the future based on the principles of technical analysis and citation of the past, the price is similar in the current situation and is continuing its long-term uptrend after fixing breakout and pullback to Middle Channel.
Note that the 161.8% Fibonacci retracement level of the last long-term bearish wave of Bitcoin is at $ 59,300, which is close to the $ 60,000 psychological resistance. Given the price attack on this level and its compression near this resistance, we can expect that by breaking this level, the upward path of the price will be smoothed.
In the daily timeframe, the key resistances are at $ 57,500, $ 60,000 and $ 65,000, respectively, depending on the specified Fibonacci correction or expansion or downtrend, so short-term price correction from each of these levels is likely. Was. If the price drops sharply after seeing the $ 65,000 target and moves below the canal floor, the tri-drive pattern will be activated in the price and its correction will be very deep.
Mr. Balkowski’s three-point channel also helps us with the four-hour time frame. According to this pattern, point D will be the turning point of the price correction trend, and after the price break from the channel, the price will probably resume its upward trend, and only the ceiling of this channel may be seen again. Significant price support levels on the downtrend are $ 54,500, $ 52,300, respectively, and the bottom of the uptrend channel (the channel marked in yellow). Each of these support levels can provide convenient entry points for short-term traders.
The final suggestion is to control your risk in the trades by optimally adjusting the loss limit, and manage your capital by entering and leaving a step in support and resistance. If you do not have enough knowledge to trade, refrain from entering trades and gradually learn this knowledge by referring to the market analysis training section. This analysis should not be considered as a signal to buy or sell.