Hong Kong-based Meitu Tech announced on April 8 that it added $ 10 million in Bitcoin (BTC) to its assets, which was acquired at an average price of $ 57,000 per coin. Following its recent acquisition, Meitu’s total cryptocurrency wallet consists of $ 49.5 million in Bitcoin and $ 50.5 million in Ether (ETH). This acquisition shows that institutional investors are confident that Bitcoin’s growth is still in its infancy.
Tom Jessop, head of cryptocurrency at Fidelity, believes that Bitcoin has reached a tipping point and that traditional financial firms will continue to use cryptocurrency aggressively in the coming years. Jessop believes that the massive monetary stimulus from governments and central banks has accelerated institutional adoption, a trend that could continue for at least another year.
Daily performance in the cryptocurrency market. Source: Coin360
Institutional investors aren’t the only ones dealing with cryptocurrencies. The data shows that the number of individual investors trading cryptocurrencies has also increased. Popular trading app Robinhood reported on April 8 that cryptocurrency trading on the platform rose to 9.5 million users in the first quarter of 2021, six times more than in the fourth quarter of 2020.
While the adoption of cryptocurrency is increasing, some legacy financial companies still take an anti-cryptocurrency approach. HSBC has reportedly blacklisted MicroStrategy shares and will not allow customers on the HSBC InvestDirect platform to purchase shares from the company.
Will Bitcoin and the larger altcoins expand their trend and attract more buyers, or will they enter a correction phase? To find out, let’s analyze the charts of 10 cryptocurrencies.
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BTC / USDT
The bears failed to take advantage of Bitcoin’s break below the 20-day exponential moving average ($ 57,043) on April 7th. Their failure to overcome the 50-day SMA support ($ 54,572) could lure buyers into aggressive bulls. Which led to a rebound on April 8th.
Daily chart BTC / USDT. Source: TradingView
Today, however, a doji candlestick signals that the bulls are struggling to maintain speed at higher levels.
The BTC / USDT pair formed an inverted head and shoulders pattern that would complete on the breakout and approach over $ 60,000. This bullish setup aims at $ 69,540. If the Bulls maintain speed and eliminate this hurdle, the trend may reach the next target of $ 79,566.
Contrary to this assumption, bears will once again attempt to break the crucial support of the 50 day simple moving average if the price falls below the current level. If they succeed, sales could rise dramatically as short-term traders can leave. It can lower the pair to $ 50,460.02 and then to $ 43,006.77.
ETH / USDT
The decline in Ether (ETH) was halted on April 7 at the 20-day moving average ($ 1933), indicating that the bulls are building on the dips. The price fell sharply on April 8 and rose above the resistance level to $ 2040.77.
ETH / USDT daily chart. Source: TradingView
Now the bulls will make another attempt to rise to an all-time high of $ 2150. If they manage to do so, the ETH / USDT pair can resume the uptrend and move towards the next target of $ 2,618.14.
However, the bears may have other plans. They will try to pull the price below the 20 day EMA. If this happens, more aggressive bulls can be caught. This can increase sales, which may lower the trend line. A break through this support would indicate a trend reversal.
BNB / USDT
Binance Coin (BNB) continues to show a strong bullish trend. The bulls reversed the $ 348.69 level to support April 7th and then broke a new all-time high on April 8th. This shows strong appetite on the part of the bulls.
BNB / USDT daily chart. Source: TradingView
Moving averages high and the Relative Strength Index (RSI) above 75 indicate that the bulls are in control. Next upside target is the $ 500 to $ 530 area, where bears can provide strong resistance.
In any correction, first support should coincide with the 20-day moving average ($ 334). The strong bounce in this support may indicate that sentiment is still bullish and that traders are buying into the downside.
However, if the BNB / USDT pair falls below its 20-day moving average, that could indicate weak upward momentum.