- Greyscale floods the market with fresh money to satisfy the demand of its clients.
- Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences.
- Market remains at risk on the verge of new bullish territory.
The cryptocurrency market remains at a standstill waiting for a catalyst to give it direction. The closeness of critical technical resistance permeates the doubts of private investors, but it does not seem to scare off the few institutional investors who play on this board.
Grayscale, through its Grayscale Bitcoin Trust, continues to accumulate Bitcoins above the world’s production capacity.
During the past week, Greyscale bought 9503 BTC when among all the miners in the world only 6863 BTC were produced. Grayscale’s buying rate accelerated from halving and has since bought 28413 BTC while the flow of new Bitcoins remains at 19200.
The buying interest of institutional investors far outpaces the mining capacity, and new money begins to flow into the secondary market supporting the bullish tone of the crypto market.
Greyscale offers Bitcoin exposure to institutional investors through the sale of shares in its investment fund. Investors pay a 29% premium on the price of the underlying asset. Still, in return, they are spared operational management, custody issues, and above all, a transparent contract with national supervisors and legislators.
ETH/BTC Daily Chart
The ETH/BTC pair is currently trading at the price level of 0.02501 while remaining just a few points away from the primary trend line that marks the breakout into a new bullish development space for the price.
Above the current price, the first resistance level is at 0.0254, then the second at 0.0258 and the third one at 0.0276.
Below the current price, the first support level is at 0.0248, then the second at 0.0236 and the third one at 0.0225.
The MACD on the daily chart is losing its upward momentum and is curving downward, looking for a possible downward cross over the weekend.
The DMI on the daily chart shows the bulls looking for support from the ADX line. The bears are feeling more optimistic and react upwards, looking for their chance if the ETH/BTC pair fails a final upward attempt above 0.0254.
BTC/USD Daily Chart
The BTC/USD pair is currently trading at the price level of $9833 while continuing the process of consolidation above the bearish channel that contained the Bitcoin price since June 2019.
Above the current price, the first resistance level is at $10400, then the second at $11375 and the third one at $12850.
Below the current price, the first support level is at $9500, then the second at $9250 and the third one at $8750.
The MACD on the daily chart extends for another day the unusual horizontal profile right in the middle of the bullish side of the indicator. The current structure can lead to sharp movements that break the current situation.
The DMI on the daily chart clearly shows the significance of the moment. The bulls find support by the ADX line and should bounce upwards (sudden upward break). If the support fails and the bulls drill down the ADX line, the bears will react quickly to the upside (price breakout downwards).
ETH/USD Daily Chart
The ETH/USD pair is currently trading at the $245.73 price level while attempting another day to break through the $250 level and then consolidate. The target for the bulls is the $267 price level, where it passes the long-term downward trend line that has been in place since June of last year.
Above the current price, the first resistance level is at $250, then the second at $267 and the third one at $288.
Below the current price, the first support level is at $233, then the second at $222 and the third one at $200.
The MACD on the daily chart maintains the previous bullish profile, but if ETH/USD does not rise in the next few sessions, the current momentum will be lost.
The DMI on the daily chart shows the bulls are leaning towards the ADX line, from where they should bounce upwards to avoid triggering the bullish pattern. The bears don’t see an opportunity at the moment and are following the bearish trend.
XRP/USD Daily Chart
The XRP/USD pair is currently trading at the price level of $0.2059 while still being dragged down by the 200-day simple moving average. Ripple has not taken advantage of the positive crypto market momentum and could pay dearly if the market loses its upward positioning.
Above the current price, the first resistance level is at $0.214, then the second at $0.184 and the third one at $0.264.
Below the current price, the first support level is at $0.20, then the second at $0.18 and the third one at $0.164.
The MACD on the daily chart shows an almost imperceptible bullish cross that gives a point of hope of seeing XRP again at the top of the day’s best, a position it hasn’t held for months.
The DMI on the daily chart shows the bears and bulls tied and at the same time pressed down by the ADX line. The current structure exerts an intense pressure that could cause an aggressive break in any direction.