Glassnode data shows that bitcoin (BTC) on central exchanges has fallen nearly 20% over the past 12 months. This indicates that investors are withdrawing bitcoins to a cold store with the goal of being able to store them for a long time. This reduced the available supply as demand continued to rise.
The emergence of ETFs may exacerbate the supply crunch. After the success of TSX Purpose Bitcoin Exchange ETFs, Canada was able to launch a second Bitcoin ETF from Galaxy Digital Capital Management, a subsidiary of Galaxy Digital. The approval of the Bitcoin ETF in Canada may put additional pressure on US regulators to become more accommodating in their approach to evaluating BTC ETF offerings.
Meanwhile, companies around the world continue to open up funds to buy bitcoins. The latest listed company to buy bitcoin is the Norwegian investment firm Aker ASA, which intends to do so through its subsidiary Seetee AS. This indicates that the trend is only just beginning, and many companies around the world can allocate some of their reserves to bitcoins.
Goldman Sachs confirmed the release of a crypto spreadsheet that supports CME Bitcoin and NDF (non-deliverable futures contracts) cash-settled contracts. Interestingly, an internal survey of the banking giant showed that 40% of customers actually have a cryptocurrency center. Respondents expect Bitcoin to expire in 2021 between $ 40,000 and $ 100,000.
Let’s examine the top 10 cryptocurrency charts to identify critical support and resistance levels.
Bitcoin / USD
Bitcoin is currently trading between the 20-day exponential moving average ($ 48,701) and the upper resistance of $ 52,040. He probably wouldn’t continue to trade with the hard execution for long.
Although the 20 day moving average is steady, the Relative Strength Index (RSI) has gradually increased, indicating that the bulls are trying to take control.
If the bulls can push the price and close above $ 52,040, then the Bitcoin / USD pair will complete the ascending triangle pattern. This could lead to a revision of all-time highs at $ 58,341 and then to $ 61,075, which is the target of the triangle breakout pattern.
On the contrary, if the price falls below the current level and breaks below the trend line, it may attract profits from traders in the short term. The pair could then slide down to $ 46,313, and if this support is also broken, the decline could extend to $ 41,959.
ETH / USD
Ether (ETH) broke the upper resistance at $ 1670 on March 7th, indicating its strength. The 20 day moving average ($ 1,624) is starting to emerge and the RSI is rising above 57, indicating less advantage for the bulls.
If the bulls can keep price above the moving averages, the ETH / USD pair can test the test up to $ 2040. A push of this resistance could initiate the next stage of an uptrend.
Contrary to this assumption, the pair could test the critical support at $ 1289 if the price falls and breaks the 50-day simple moving average of $ 1.572.
BNB / US Dollar
Binance coin (BNB) hit the 20-day moving average ($ 217) on March 5th, but the bulls failed to push the price towards the upper resistance at $ 265. This indicates that demand at higher levels is declining.
If the bears dip below the 20-day EMA support, the BNB / USD pair could drop as low as $ 189. A breakout and close below this support could open the door to a lower 50-day SMA of $ 137.
Conversely, if the price returns from the 20 day moving average, the bulls will attempt to pull the pair above $ 265. If they succeed, a $ 309.49 meeting is feasible. The 20-day gradual rally of the EMA and the RSI above 57 indicate little gains for the bulls.
ADA / US Dollar
Cardano (ADA) has stabilized above the 20 day moving average ($ 1.08) for the past four days, but the failure of the bulls to initiate a strong rebound indicates no strong buying at today’s level.
The bears can now try to break the 20 day moving average support and deepen the correction to $ 0.9817712 and then to the 50 day simple moving average to $ 0.769.
However, the 20-day steady exponential moving average and the RSI over 58 indicate that the bulls have a slight edge.
If the price manages to return from current levels and rise above $ 1.20, the ADA / USD pair might rise to $ 1.35, then $ 1.48.