Bitcoin (BTC) is gradually gaining status like gold, the traditional store of value. Data shows that as of February 17, only 0.0352 Bitcoins could be purchased per ounce of gold, the lowest level Bitcoin has ever seen. This indicates that Bitcoin has rewarded its investors much more than gold.
Bitcoin has outperformed gold at various times. Although taking the latest annual data into account, Bitcoin’s risk-adjusted return is 270%, while gold is only 24% as of December 28, 2020.
The score skewed further in Bitcoin’s favor when comparing the longer four- or eight-year timeframes.
In recent years, Bitcoin has evolved into an asset class. During the previous uptrend in 2017, Bitcoin’s 60-day volatility was 32%. But in its current bullish phase, Bitcoin is reporting 14.25% less volatility. Analysts believe that as institutional adoption increases, volatility can decrease further.
There is no sign of slowing growth in the number of organizations showing interest in Bitcoin. Many US financial institutions are “seriously considering launching some kind of cryptocurrency service,” Elliptic co-founder Tom Robinson told The Telegraph.
If institutional acceptance continues to rise, sentiment is likely to remain positive. Let’s analyze the top 10 cryptocurrency cards to determine which growth levels can act as great resistance.
Bitcoin / USD
The psychological level of $ 50,000 saw less resistance to Bitcoin, indicating that the bulls are good at restraint and are in no hurry to make gains as they expect the bears to continue.
Setting a new full-time record of over $ 51,000 is a sign of strength. The 20-day bullish moving average ($ 43,451) and the Relative Strength Index (RSI) are in the overbought zone indicating that bulls are in control.
If the bulls manage to keep the price above $ 50,000 for three days, the BTC / USD pair could build up to $ 60,974.43 where the bears can enter.
On the other hand, the first support is the 20 day moving average, and if the bears can dip below it, the decline may extend to the 50 day simple moving average ($ 37415). This is an important level to watch out for, as a break below it indicates a shift in momentum towards the bears.
ETH / USD
Currently, the value of ETH ranges from $ 1,658,572 to $ 1,869,473. The long tail of the February 15th candlestick shows that the bulls are buying at every smaller dip. Buyers will now try to push the price over $ 1,869,473.
If they succeed, the ETH / USD pair might initiate the next step in the trend, with a target of $ 2000. This is important resistance, but if the bulls can push the price across the channel, the momentum may accelerate. Next growth target is $ 2,515.
Contrary to this assumption, the pair may consolidate in this area for several more days if the price does not rise above $ 1,869,473. A break below the 20 day moving average ($ 1.658) will be the first sign of weakness, and if the bears push the price below the channel target, a change of trend will be indicated.
DOT / USD
DOT Polkadot climbed to a new high on February 16 and then to a new high on Wednesday, indicating that the bulls have complete control. However, bears defend the channel resistance line.
If the bulls manage to push the price into a bullish channel, momentum may increase and the DOT / USD pair could rise to $ 42. On the other hand, even if the price remains in the upper half of the channel, the trend can gradually continue.
The first sign of weakening momentum would be a break below the middle of the channel. If this happens, the pair may refuse to lead the channel. This is an important support level as a break below it could indicate a change of trend.
ADA / US Dollar
After a sharp return from the February 15 decline, Cardano created a candlestick pattern for February 16 and a doji candlestick pattern today, indicating the balance between supply and demand.
ADA / USDT daily chart. Source: TradingView
Now the bulls will try to push the price up to $ 0.9717712. This level is likely to act as strong resistance, but if the bulls are able to push the price above it, the ADA / USD pair might build up to $ 1.25, then $ 1.50.
On the other hand, if the price falls from the current level or higher resistance, the pair may drop to $ 0.687. A bounce from this level could maintain the price range between $ 0.687 and $ 0.981.
XRP / US Dollar
XRP price tried to rebound from $ 0.50 on February 14 and 15 when looking at the long tails of candlesticks, but the bulls were unable to maintain profitability. This is talking about