A report by Deutsche Bank Research says that bitcoin (BTC) has become “too important to ignore” and may be subject to regulation by the end of 2021. Deutsche Bank analysts expect Bitcoin to reach a tipping point in two to three years, when it is clear whether Bitcoin will become an asset class or not. In the short term, the report expects Bitcoin to remain “extremely volatile”.
Another Bank of America report provided some insight into possible causes of Bitcoin’s volatility. Analysts at Bank of America have calculated that the price of bitcoin could rise 1 percent when the inflow of 93 million dollars is made. In comparison, it will take around $ 2 billion for gold to move it one percentage point.
This large variation in the price reaction to the cash flow is attributed to bitcoin holders who did not share their currencies during the current rally.
While it is difficult to predict the price Bitcoin whales will earn on the assets of, Dan Held, Kraken’s growth manager, told the Cointelegraph in a recent interview that Bitcoin could reach $ 1 million during the current supercycle.
Held believes that the convergence of events such as the coronavirus crisis, the printing of central bank money and growing distrust of outdated financial companies are factors that support the growth potential of cryptocurrencies.
Let’s examine the charts of the top 10 cryptocurrencies to determine if the trend will resume, or does it show signs of exhaustion?
Bitcoin / US dollars
Bitcoin jumped from the 20-day exponential moving average ($ 54,844) on March 17 and climbed over the total resistance of $ 58,341.03. However, the increase to $ 60,102.15 led to a profit on March 18.
However, in a positive sign, the bulls bought a lower price and returned the price above $ 58,341.03. A break of over $ 60,102.15 can test all the time at $ 61,825.84.
Bullish moving average and relative strength index (RSI) in positive territory indicate that the path of least resistance is upside. A break above $ 61,825.84 could start the next upstream phase at $ 72,112.
Although the RSI shows a negative deviation, traders should look closely at the price action because a sharp rise from the current level may negate this downward trend.
If the price falls and falls below the 20-day moving average, this will be the first sign of weakness. A deeper correction may be indicated if the bears dip and continue to support the BTC / USD pair below the 50-day SMA ($ 48,578).
ETH / USD
Ether (ETH) has been trading above the 20-day moving average ($ 1,756) for the past three days. This is a positive sign, as it shows that the bulls are rising in the valleys towards the 20-day moving average.
If the bulls manage to push the price above $ 1,850, the ETH / USD pair could rise to $ 1,942.92 and then challenge all the time at $ 2,040.77. A pause and close over this resistance may begin to move down to $ 2,614.
The moving averages are sloping upwards and the RSI is in positive territory, which indicates a small advantage for the bulls.
However, this positive assumption will be invalid if the price falls and falls below the moving average. Such a move could bring the price down to $ 1,289 and keep the couple in a limited selection for a few more days.
BNB / US Dollar
Binance Coin (BNB) has successfully held the 20-day EMA ($ 251) for the past four days, but the bulls have struggled to push the price above $ 280 and challenge the general resistance to $ 309.50.
However, the 20-day moving average is declining gradually, and the RSI is in positive territory, showing a small gain for buyers. A break and close above $ 309.50 will complete the rising triple pattern. The target price for this rig is $ 429.
On the contrary, if the price falls below today’s level and breaks the triangle’s trend line, it will indicate that the bears have overpowered the bulls. This can result in $ 189.
ADA / US Dollars
Cardano (ADA) fell from a full-time high of $ 1.48 on March 18 when traders took profits. However, in a positive sign, the bulls are trying to protect the $ 1.23 level.