Bitcoin Trust Funds (BTC) first appeared on the Toronto Stock Exchange on February 18 and quickly increased trading volumes for the share for two days by nearly $ 400 million. This is impressive when you consider that the Canadian stock market is only a small portion of the US market. This shows strong demand for bitcoin and an investor’s preference for using the ETF pathway to create new trades.
Bitcoin reached another major milestone last week when it reached a critical market value of $ 1 trillion on February 19, making it the sixth largest company by market capitalization in the world.
The commitment of institutional investors and a market value of more than $ 1 trillion could allay concerns about manipulation and liquidity that the US Securities and Exchange Commission reached in previous years when applications for Bitcoin ETFs were rejected.
In a recent interview with CNBC, Ark Invest CEO Katie Wood said that “the likelihood of opening an ETF has increased”. Wood said the new SEC chair, Gary Gensler, who taught digital currency at MIT, may be more open to cryptocurrencies and increase the likelihood that the Bitcoin ETF will be approved.
While Bitcoin’s fundamentals continue to improve, it may face some disruptions in the short term due to the upside in the US curve.
Let’s analyze the charts of the 5 most important cryptocurrencies, which indicate the potential for a renewal of the trend in the short term.
Bitcoin / USD
Bitcoin broke the resistance line of the rising channel on February 19 and the bulls managed to contain the outbreak. This indicates that traders are continuing to buy at higher levels.
The BTC / USD pair formed a Doji candlestick pattern on February 20, indicating that the bulls and the bears are hesitant about the next trend move. The uncertainty has been resolved today, and the bulls will now attempt to lift the price to $ 60,974.43.
The 20-day exponential moving average ($ 47,450) is sloping and the Relative Strength Index (RSI) is in the overbought zone, indicating a bullish advantage.
Contrary to this assumption, the bears will attempt to pull the price back to the 20 day moving average if the price returns to the channel. A break down the channel will indicate a possible change in the trend, hence the pair can correct the 50 day simple moving average.
The 4 hours chart shows that the pair remains in a strong trend and the bulls are buying strongly on the 20-EMA dips. The bears will try to stop the current trend at the rising channel’s resistance line.
If they succeed, the pair can return to the 20-EMA. A bounce from this support may indicate that the trend is still strong and that the bulls are not looking for a deeper buy correction. The momentum can increase if bulls are able to manage and maintain price through the channel.
On the contrary, if the bears can drop below the 20-EMA, then the traders will offer to take profits. The trend may weaken if the pair falls below the channel.
AAVE / USD
AAVE has raised between $ 392.50 and $ 545 in recent days. Stabilization after a strong uptrend is a positive sign, as it indicates that traders are not in a hurry to finish as they expect higher levels in the future.
The 20-day moving average ($ 427) is flat and the RSI is just above 56, indicating that the range function could continue for a few more days.
If the buyers manage to push the price above $ 480, the USD / USD pair could rise to $ 545. A break above $ 545 and approaching the $ 581.667 resistance zone could initiate the next phase of the uptrend, which could reach $ 697.50 and then the dollar. . 814397.
On the other hand, if the bears manage to fall and keep the price below $ 392.50, this indicates that supply is outstripping demand. This could start a deeper correction towards the 50-day SMA ($ 297).
The 4-hour chart shows that the price fluctuates between $ 500 and $ 392.50. If the bears dip below the support at $ 392.50, the pair might drop to $ 300 and then to the 61.8% Fibonacci retracement level at $ 267.094.
Contrary to this assumption, it could go up to $ 500 if the bulls manage to push the price above the 50-SMA. Breaking this resistance will improve expectations to $ 545, then $ 581,667.