The Bitcoin Exchange Traded Trust (BTC) appeared on the Toronto Stock Exchange on February 18 and quickly increased its stock volume by almost $ 400 million in two days. This is impressive considering that the Canadian stock market makes up only a small part of the US market. This shows a strong demand for bitcoin and an investor’s preference to use the ETF path to create new positions.
Bitcoin reached another important milestone last week when it reached a critical market value of $ 1 trillion on February 19, making it the sixth largest asset in the world by market value.
Institutional investor participation and a market value of over $ 1 trillion could curb fraud and liquidity problems from the US Securities and Exchange Commission in previous years for rejecting Bitcoin ETF requests.
In a recent interview with CNBC, Ark Invest CEO Katie Wood said: “The likelihood of an ETF creation has increased.” Wood said new SEC chief Gary Gensler, who studied cryptocurrency at MIT, could be more open to cryptocurrencies, which would increase the likelihood of Bitcoin ETF adoption.
While Bitcoin’s fundamentals continue to improve, there may be some short-term disruption due to the rise of the US Treasury curve.
Let us analyze the charts of the 5 best cryptocurrencies that indicate the possibility of a resumption of the trend in the short term.
Bitcoin / US dollars
Bitcoin broke through the resistance line of the rising channel on February 19, and the bulls managed to withstand the break. This indicates that traders continue to buy at higher levels.
The bitcoin / dollar pair formed a Doji candlestick pattern on February 20, indicating that bulls and bears are fluctuating relative to the next trend. This upside uncertainty has been cleared up today, and the bulls will now try to push the price up to $ 60,974.43.
The 20-day exponential moving average ($ 47450) is up and the relative strength index (RSI) is in overbought territory, indicating a bullish advantage.
Contrary to this assumption, the bears will try to bring the price back to the 20-day moving average, if the price returns to the channel. A breakdown of the channel downwards will indicate a possible change of direction, and then the pair can correct it to the 50-day simple moving average.
The 4-hour chart shows that the pair remains in a strong uptrend and bulls have actively bought on the fall to 20-EMA. The Bears will try to stop the current upward movement at the resistance line of the upward channel.
If successful, the pair can return to 20-EMA. A rebound from this support will indicate that the trend is still strong and the bulls are not looking for a deeper purchase correction. Momentum can increase if the bulls manage to push and keep the price across the channel.
On the contrary, if the bears manage to push the price below 20-EMA, it will indicate that traders are making a profit. The trend may weaken if the pair falls below the channel.
AAVE / USD
AAVE has consolidated between $ 392.50 and $ 545 in recent days. Unity after a strong uptrend is a positive sign, as it indicates that traders are not in a hurry, 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 may continue for several more days.
If buyers manage to push the price above $ 480, the USD / AAVE / USD pair could rise to $ 545. A break and proximity above the $ 545 resistance zone to $ 581,667 could start the next phase of the uptrend, which could reach $ 697.50 followed by $ 814,397.
On the other hand, if the Bears manage to move lower and keep the price below $ 392.50, it will mean that supply exceeds demand. This could trigger a deeper retracement of the 50-day SMA ($ 297).
The 4-hour chart shows that the price is between $ 500 and $ 392.50. If the price falls below the $ 392.50 support level, the pair may fall to $ 300 and then to the 61.8% Fibonacci retracement level of $ 267.094.
Contrary to this assumption, if the bulls can push the price above 50-SMA, the price can rise to $ 500. A breach of this resistance will increase the chance of a move to $ 545 and then to $ 581,667.