BTC continues its upward trend, and ETH will test a new high of $1700! Is the bull market coming?
In the past two trading days, the price of Bitcoin (BTC) exceeded $36,000. BTC even broke through the resistance of 37,000 USD and soared above 38,000 USD. A high is formed near $38,350 and the price is correcting its upward trend. Initial support is near $37,500. The first major support is at $37,200, below which the price may test the $36,500 support.
The $38,000 level is the main obstacle for the bulls. A closing price higher than $38,000 may open the door for a breakthrough of $40,000.
Ethereum (ETH) followed the strong rise of Bitcoin, breaking through the $1,600 level. ETH traded to a record high, almost testing the level of $1,700. It is correcting its gains and its support is near $1,650.
The first key resistance on the upside is near the $1695 and $1700 levels. After breaking through $1,700, it may continue to attack $1,800.
The market is rising, and the second round of bull market is coming?
Scott Minerd, a chief investment officer of Guggenheim Partners, a $310 billion fund management company, said in an interview with CNN,
Cryptocurrency has entered a respectable field.
Minard stated in December that the value of Bitcoin should be 400,000 US dollars, but last month he said that the price of Bitcoin may fall to 20,000 US dollars in the short term. Now, he says that he can imagine prices as high as $600,000.
After hitting a record high, the second-largest cryptocurrency, Ethereum, continued to achieve another glory on Wednesday, breaking through $1,600. Due to the increasing activity on the Ethereum blockchain, it has received huge attention. Ethereum has risen 5 times in 2020 and has more than doubled this year, surpassing the more well-known Bitcoin’s return of 21% so far this year.
Also, the Chicago Mercantile Exchange (CME) will launch a new futures contract on Ethernet next week. This may bring more discussion to Ethereum because Bitcoin futures listed on the Chicago Mercantile Exchange at the end of 2017 have become one of the most popular ways for large institutions to bet on Bitcoin.
JPMorgan Chase strategist wrote in a report to clients:
The listing of Ethereum futures on a regulated exchange should help strengthen the structure of the crypto market, allowing investors to gain the second largest cryptocurrency exposure as a means of diversification of Bitcoin, or simply to hedge existing exposure to Ethereum.
After the Ethereum futures contract is listed this week, there may be negative price dynamics, allowing some physical Ethereum holders to hedge their risk exposure.
But they went on to say:
After the successful launch of ethereum futures this month, ethereum futures options may be launched, possibly as early as 2022, similar to the launch of bitcoin futures options in the first quarter of 2020.
Nicholas Pelecanos, Head of Trading at NEM Group stated:
The prospect of cryptocurrency will only get stronger.
Similar to Bitcoin, the institutional buyers of Ethereum may be pushing up prices. Simon Peters, an analyst at the trading platform eToro, said,
In any case, it is obvious from the price that the reduction in supply is rapidly affecting prices. …As institutions are expected to further increase their positions, we expect the price of Ethereum to push up from now on.
Other analysts have linked the recent stock sell-offs of WSB such as GameStop with cryptocurrencies. Edward Moya, a senior analyst at London’s foreign exchange brokerage firm Oanda, wrote in a market update report on Tuesday:
The panic selling of GameStop, AMC, and silver triggered good bidding for cryptocurrencies.
Institutional investors are still pouring in
Earlier this week, Grayscale Investments, the largest Bitcoin trust fund manager, reopened the Ethereum Trust to accredited investors.
Investment company Accelerate Financial Technologies is seeking approval from the Canadian securities regulator to list its Bitcoin exchange-traded fund (ETF) on the Toronto Stock Exchange.
The California Public Employees Retirement System is the largest public pension fund in the United States, valued at $441 billion. On Tuesday (February 2), the agency disclosed in a document that as of the end of 2020, it holds approximately 113,000 shares of Bitcoin miner Riot blockchain, valued at approximately $1.9 million.