Konstantin Anissimov, Executive Director at CEX.IO
The Bitcoin (BTC) and Ethereum (ETH) markets are on the side of the bulls today as both digital currencies received liberation from the market bears. A soothing succor is returning to the market following days of constant dips from the world’s two largest cryptocurrencies by market capitalization.
Both Bitcoin and Ethereum have broken past their key resistance hurdles at $56,000 and $1,800 respectively. The market is agitated as this upsurge is needed to reconfirm the potentials of the market to close the quarter at an average of the differing price targets set by various investors and traders backing the markets.
At the time of writing, Bitcoin has gained 4.16% and is trading at $58686.9, per data from the CEX.IO price feed. Ethereum’s bounce has earned it a 2.02% growth in the past 24 hours, and currently exchanging hands at $1822.47 per Ether. The correlation on the upswing for both digital currencies is reinstated and in hopes of sustained performance, both asset classes may yet close today with a correspondingly balanced growth rate.
A brief look at the forces moving the market today.
Bitcoin Bulls Capitalizing on Morgan Stanley’s BTC Move
The bullish resurgence of Bitcoin takes its precedence from the news from one of the United States’ biggest investment banking giants, Morgan Stanley, who is providing access to Bitcoin funds for its clients. According to media reports, the firm will provide access to three funds, including two from Galaxy Digital, and will let clients have direct exposure to Bitcoin investments.
Besides the fact that the move is the first of its kind from a US bank, it will be temporary succor for American investors that have been anticipating a more mainstream investment vehicle that will let them tag along the moving train of the fast-growing emerging asset class. The Bitcoin fund access from Morgan Stanley is reserved for high networth individuals, but that is even a better bet for Bitcoin as more inflows of funds are expected.
Per the breaking news, BTC has sliced through the key resistance levels including the $56,000, and the $58,000 psychological levels respectively. From a low of $54,100 on March 17th, Bitcoin is now looking to retest the $60,000 resistance level, a push that is being resisted as the bear pressure is peaking at the current price level.
The BTC-USD 4-hour chart shown above is reflecting the ongoing bear pull, forming a resistance on Bitcoin’s ambitious surge to breach the $60,000 price zone. With an RSI that is slightly below the buying point, the retracement of the price movement from the upper Bollinger Band may stir a healthy correction from the bull run ignited based on the Morgan Stanley news.
However, the longer-term prospects of Bitcoin remain bullish, and a break about the $60,000 level should not come as a surprise. A dip back to the $56,000 support zone cannot also be ruled out.
Ethereum and the Meitu Inc Favoritism
Ethereum is comfortably unchallenged as the second-largest digital currency, and Meitu Inc, the tech firm from China is remarkably favoring Ether as its number one cryptocurrency. The company announced a new purchase of a total of 16,000 units of Ether at an aggregate consideration of approximately US$28.4 million as well as 386.08581655 units of Bitcoin at an aggregate consideration of approximately US$21.6 million.
Per the obvious allocation, the company has more stake in Ethereum than Bitcoin, an unusual move seen when compared to the publicly traded company that has adopted digital currency investments as an alternative to holding fiat currencies.
Ethereum is not taking this recognition for granted, surging past the $1,800 resistance zone, in a move that suggests a new break above the $1,900 price mark. While the buyers were keeping at ensuring this target is reached, their efforts were met with unwelcome resistance from the bears who appear to be taking over the market at this time.
Ethereum gains are being parred off in correlation with the observed Bitcoin trends, as the impact of the Meitu favoritism is swiftly waning. While Ethereum battles the enormous challenges it is faced with, market bulls are optimistic the coin will crest and make the $2,000 level its major support level by the end of the first quarter.
In the short term, Ethereum may drop back to the $1,700 price level, with eys being kept on the $2,100 as the next major price target.
Executive Director at CEX.IO