Bitcoin (BTC) is also showing a strong correlation with the important S&P 500 stock index this week, but institutional investors apparently don’t want to wait for the US stock market to rally or the price of Bitcoin to decouple from it.
A 30,000 BTC transaction, which was recently completed in a single day by professional trading platform Coinbase Pro, is a clear indication of continued interest from institutional investors.
Publicly-listed software maker MicroStrategy, which is considered the largest Bitcoin investor outside of the financial world, has yet to come to the end of the road with its 129,219 Bitcoin stalks to date, because as reported CEO Michael Saylor in a circular to shareholders, the company will use this investment strategy continue to pursue this “resolutely” in the future.
Another major bitcoin investor is the Luna Foundation Guard (LFG), the nonprofit organization behind the Terra blockchain project, which now owns 42,530 BTC itself. Related development team Terra Labs has also donated $820 million to the Foundation in the form of proprietary cryptocurrency LUNA, which is expected to be used for new investments in Bitcoin.
Does Coinbase Pro’s Large Transaction Suggest the Crypto Market Is About to Bottom? Let’s take a look at the most important prices of market-leading cryptocurrencies.
Bitcoin’s last notable bounce crashed to $41,561 on April 13, suggesting that there is still plenty of selling pressure in the higher areas. Meanwhile, buyers are scrambling to defend the psychologically important $40,000 mark.
The 20-day exponential moving average (EMA) is currently at $42,419 and trending lower, and the relative strength index (RSI) is also in negative territory, suggesting that Bitcoin price may continue to decline for the moment.
If the price slips below $39,200, the selling pressure could intensify, which could push BTC/USDT towards the ascending channel support. However, the bulls will counter with a lot of power here at the latest.
If this likely scenario does not materialize and Bitcoin is able to rally higher and jump above the 20-day EMA, this would indicate that an accumulation is taking place in the lower areas. The bulls would also use this momentum to push the price up to $45,400 as well.
Ethereum (ETH) is currently caught in the clamp between the 20-day EMA at $3,144 and the 50-day simple moving average (SMA) at $2,975. While bulls eagerly defend the 50-day SMA, bears immediately sell any bounce towards the 20-day EMA.
Now, if Ethereum slips below $2,950, the selling pressure could intensify and send ETH/USDT as low as $2,817. Although this level is likely to act as support, if this also breaks down, Ether could crash to the uptrend line.
However, if the price catches up and breaks above the 20-day EMA, Ethereum could see a rise in the area between the 200-day SMA at $3,491 and $3,600. Again, this zone is of significant importance because if it can also be skipped, the market leading altcoin is very likely to return to the uptrend.
Ripple (XRP) continued to fuel the recent rally, reaching the 50-day SMA at $0.78 on April 15. If the Ripple price can now stabilize above this bar, a jump to US$0.91 is also possible.
However, the flattening 20-day EMA and the mid-position RSI suggest that Ripple may turn sideways in the coming months. XRP/USDT would then remain in the $0.69-$0.91 range for a few days.
If that doesn’t happen and the price fails the 5-day SMA instead, that’s a clear sign that the bears are selling all the uplegs. This could then turn into a further decline to the key support at $0.69. If this mark is also underpriced, the crash could drag to $0.62.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every stage of investing and trading involves risk. Research well before making a decision.
Market data comes from HitBTC-stock Exchange.
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