Bond yields declined in most developed countries after central banks took a series of measures to confront the economic crisis caused by the Covid-19 pandemic.
This could be a problem for institutional investors who rely on the traditional 60/40 portfolio allocation between stocks and bonds.
Fidelity Digital Assets also released its Bitcoin Investment Report this week, which shows how a portfolio with 1 to 3 percent of Bitcoin allocations (BTC) can outperform traditional allocations over various periods of time.
The report also highlights how Bitcoin’s market value can increase even if it manages to attract a fraction of the $ 13.4 trillion alternative investment market or the $ 50.3 trillion bond market.
To date, around 13 public companies have committed nearly $ 6.8 billion in Bitcoin investments to date, according to Coin98 Analytics. Although total corporate investment does not exceed 3.2% of the current market value of bitcoin, there is an encouraging sign that investments are increasing regularly.
If this trend continues and more institutional investors enter the cryptocurrency space, the bitcoin price could rise dramatically.
Let’s analyze the top 10 cryptocurrencies to find out the trend in the markets.
Bitcoin / USD
Bitcoin (BTC) broke through the $ 11,500 resistance and rose to $ 11,719 on October 12th, but the bulls were unable to hold. This indicates that higher levels are attractive to selling traders in the short term.
The Bitcoin / USD has been correcting for the past 2 days, but on the positive side, the bulls have managed to keep the pair above $ 11,178.
The high of the 20-day exponential moving average ($ 10,999) and the RSI over 60 indicate that the bulls have an advantage.
If the buyers manage to push the price and hold above 11560, the pair can pick up speed and resume the uptrend. The first growth target is $ 12,048, and if this level is increased, the uptrend might reach $ 12,460.
This bullish view will become invalid if the pair continues to weaken from the current level and breaks below the 20 day moving average. Such a move would mean poor progress.
ETH / USD
The bears are defending the $ 395 resistance to keep Ether (ETH) between $ 395 and $ 308. However, the gradually increasing 20 day moving average ($ 363) and the RSI indicator in positive territory suggest less advantage for the bulls.
If the bulls buy the dip to the moving average, the ETH / USD pair may attempt to rise above $ 395. If successful, the pair could rise, which could reach recent highs of $ 488,134.
Contrary to this assumption, if the sellers dip below the moving average, the pair may fall to an uptrend line. If the pair returns from this support, the bears will try to push the price above $ 395.
Conversely, if the price falls below the uptrend line, it can sustain the pair’s range for several more days.
XRP / US Dollar
The bulls failed to push XRP above $ 0.26 and thus an inverted head and shoulders was not completed. The moving averages have been flat and the RSI has decreased to the midpoint, indicating a balance between supply and demand.
If the bears drop and keep the price below the moving average, the alt currency can be consolidated for a few more days.
Conversely, if the XRP / USD pair bounces off the 20-day moving average ($ 0.248), the bulls will make an effort to push the price above the upper resistance.
If they manage to close (UTC) above $ 0.26, then the inverted head and shoulders would be completed. This may start to rise, which may rise to $ 0.303746.
BCH / USD
The failure of the bears to push Bitcoin Cash (BCH) down during the 20-day moving average ($ 234) on October 12 showed no selling pressure at lower levels. Traders saw this as a buying opportunity, and on October 13th it pushed the price over the highest resistance to $ 242.
The moving averages are nearing the completion of the bullish crossover, and the RSI rose above 68, indicating that the bulls are in control of the market. They will now try to push the BCH / USD pair up to $ 280 and up to $ 300.
However, bears are unlikely to give in so easily. They will make another attempt to bring the price back below the $ 242 and the 20 day moving average.