The total crypto market capitalization reached the important milestone of $2 trillion on April 5. As cryptocurrencies increase in value, they are likely to attract further investments from institutional investors because they can no longer afford to neglect it.
Less than three months ago, the crypto market had reached the $1 trillion in market cap for the first time ever. This rate of growth shows that investors are hugely bullish on the potential of the sector and the ones who delay their investment decisions may have to enter at much higher levels.
Ark Invest founder and CEO Cathie Wood is well known for identifying disruptive technologies and the firm is backing Bitcoin (BTC) to do just that. Yassine Elmandjra, a crypto asset analyst at Ark, said Bitcoin was “100 times better” than gold, hence he believes Bitcoin will rise 10-fold from the current market capitalization of $1 trillion to match gold’s $10-trillion market cap.
For Bitcoin to continue its northward journey, the institutions will have to continue pumping money into it. Purpose Bitcoin ETF, Canada’s first licensed Bitcoin exchange-traded fund (ETF) launched two months ago and currently, it holds 16,462 BTC.
If a Bitcoin ETF gets the approval of the regulators in the United States, it could attract huge investments, dwarfing the inflows into the Purpose Bitcoin ETF.
The crypto story has widened beyond Bitcoin. Data from business analytics firm CB Insights showed crypto and blockchain technology-focused startups received $2.6 billion in funding in Q1 2021. This is way above the total funding of $2.3 billion received in 2020, indicating the growing interest in the sector.
So the question on the minds of most investors is whether or not the crypto market will be able to sustain its current momentum. Let’s analyze the charts of the top-10 cryptocurrencies to find out.
Bitcoin has bounced off the 20-day exponential moving average ($56,750) today, which suggests that the sentiment remains positive and the bulls are buying on every minor dip.
The buyers will now try to push the price above the $60,000 to $61,825.84 overhead resistance zone. If they succeed, it could open the doors for a rally to $69,540 and then $79,566.
However, the bears are unlikely to give up easily. They will once again try to stall the rally in the resistance zone. If that happens, the possibility of a break below the 20-day EMA increases.
That could result in a drop to the critical support at the 50-day simple moving average ($53,978). If the bears sink the price below the 50-day SMA, the pair could drop to the next support at $50,460.02.
Ether (ETH) made a new all-time high at $2,144.59 on April 2. However, the bulls could not build upon this move as the bears sold aggressively and pulled the price back below the breakout level at $2,040.77 on April 3.
Since then, both the bulls and the bears have been battling it out near $2,040.77. While the bulls are attempting to flip this level into support, the bears are trying to pull the price below it and trap the bulls.
The rising 20-day EMA ($1,872) and the relative strength index (RSI) above 65 suggest the bulls have the upper hand. If the buyers succeed in pushing the price above $2,144.59, the ETH/USDT pair could start the next leg of the uptrend that may reach $2,618.14.
Contrary to this assumption, if the bears pull the price below $1,977, the pair could drop to the 20-day EMA. A break below this level will suggest the bullish momentum has weakened and could result in a decline to the trendline.
Binance Coin (BNB) cleared the $348.69 to $356.98 overhead resistance zone today and made a new all-time high. Whenever an asset class hits a new all-time high, it is a sign of strength because it shows that traders are buying at higher levels as they expect the rally to extend…