[PRICE ANALYSIS] APRIL 10: BTC, ETH
This period of global financial market instability, following the closure/suspension of economic activity by the various government, may have presented an excellent opportunity for several crypto enthusiasts to increase their holding of bitcoin. As reported by Glassnode, the number of people that have up to 1 BTC in their wallet increased significantly after the crypto market crash that occurred on March 13th. The increase may be a strong indication that long term holders are undeterred on their bullish position on bitcoin, even as the halving event draws closer.
Another development that is drawing more attention to bitcoin as a stable investment vehicle is the introduction of The Bitcoin fund on the Toronto Stock Exchange. The fund allows individuals to add bitcoin to their investment portfolio without worry about the nitty-gritty of bitcoin's custody or security. 3iQ is the portfolio manager for the fund, while Gemini exchange acts as the custodian for the bitcoin fund.
As stability returns to the global financial markets, bitcoin's performance records are becoming more independent of other financial market instruments. According to records retrieved from the market in the preceding ten days, the correlation between bitcoin and assets like gold has been negative. Conversely, bitcoin is becoming more aligned with altcoins in price movement.
In the days to come, even though bitcoin has not yet gone bullish, we expect more institutional finance directed at the premier cryptocurrency. We also believe that because of the maturity that bitcoin has displayed in these times as a mature asset class, more portfolio managers will consider reorganizing their portfolio to accommodate more bitcoin as a part of their hedging strategy.
BTC/USD
Despite our optimistic perspective on the movement of bitcoin, it has been unable to push beyond the 50-day SMA over the last three days. This has prompted the short term traders who took long position from lower price levels to start sweeping their profits.
The 20-day EMA of $6834 may be our support from the present swing. If the support holds firm, there will be a rebound that could signal a positive move above our 50-day simple moving average, which will prepare a stimulus for a rally to $8,000.
Conversely, if our expectations do not go as planned, and the support does not hold the bear from sinking prices further, then a move towards $5,660.47 is possible. Therefore, we advise that traders keep their stop loss on the long positions at $5,600.
ETH/USD
The bulls could not sustain the move to push Ether above the 50-day SMA, despite the spike in prices on April 6th. This is an indicator that the bears are still in control, defending their positions.
The pair has dipped to our 20 day EMA, which is currently acting as our support. The bulls will attempt to take the pair above our 50-day SMA to a new target of $250 if it rebounds from the current levels.
However, if the reverse happens, then a descent in price to $117.090 is possible. Therefore, traders on long positions can maintain their stop loss at $135
Note: This post is culled from an original article by cointelegraph
