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flag ★ Growing investments in crypto assets, but Bitcoin is in between two directions

Crypto Analysis:::2021-04-21T00:30:07

Growing investments in crypto assets, but Bitcoin is in between two directions

Bitcoin has stabilized after the collapse. On the chart of the main cryptocurrency, there is a sideways trend. However, this is not accurate, since its upper limit has not yet been confirmed for the second time, which means that there is a chance to see consecutive lows and the formation of a downward trend.

On Monday, the support level of 53980.47, marked with a dotted line, resisted. The price recovered after the false breakdown, but has not yet reached the outlined resistance of 57513.35 (blue dotted line). If it reaches this limit and rebounds down, there will be reasons to expect consolidation in the sideways direction.

Another technically possible scenario within these borders can also be considered. We are talking about the intermediate mirror level of 100 according to Fibo Expansion (55760.58), which broke through in both directions during the first day of the week and has now prevented the price to rise. And if it works as a resistance, then it is possible to break the border of 53980.47 when declining.

However, these are local scenarios. Even if the BTC/USD pair stops for some time in the sideways direction in the medium-term, there are still two possible scenarios for the development of events. If there is a breakdown and consolidation below the support level of 53,980.47, Bitcoin could decline further to $ 50,000 per BTC. But if the local resistance of 57513.35 is broken and the price consolidates above it, there will be a chance to recover at least $ 60,000 per BTC.

Meanwhile, the interest in cryptocurrency assets has not subsided. Most likely, it was supported by last week's sensational event. CoinShares, a digital asset management company, has published another report. It notes that from there was an increase in interest in cryptocurrency assets from April 12 to 17. Investments in them increased by $ 233 million. This is almost a threefold increase. In March, the maximum investment volume reached $ 150 million.

It is worth noting that this is the same week that the Coinbase listing took place. At the same time, there was an update of the historical high for Bitcoin, as a result of which its price rose to $ 64883 per coin. But in the end, the main cryptocurrency collapsed to $ 52,000.

From the Coinbase report, it became known that investments were made in completely different cryptocurrency assets. $ 108 million was invested in Bitcoin-related products, while interest in Ethereum-related products totaled $ 65 million. On the other side, Ripple-related instruments accounted for 33 million and the amount of XRP assets under management amounted to $ 83 million.

There was also an increase in the volume of trading in cryptocurrency investment products by 59% during the week.

Growing investments in crypto assets, but Bitcoin is in between two directions

Analyst InstaForex
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