Over the past few months, large institutional companies like Tesla, Square, MicroStrategy, Grayscale, and others have been buying Bitcoin worth billions of dollars. Tan Yukai, an analyst in the currency circle, believes that these purchases have become the main driving force for the continued rise in Bitcoin prices. “Therefore, the primary portfolio reason for holding Bitcoin is not diversification, stable returns, or inflation protection, but pure price appreciation, depending on whether demand for Bitcoin outstrips supply.”
Yu Kai, who talks about the currency circle, believes: "The only reason to hold Bitcoin is to increase the price, and the price of Bitcoin will only increase when large companies buy a large amount of Bitcoin. Because although the supply and emission rates of cryptocurrencies are fixed , but demand for it can fluctuate, causing huge ripples in the market. Bitcoin has also become correlated with risk assets, it is not correlated with inflation, and remains very volatile, which makes it unsuitable as a store of wealth or payment mechanism .”
Bitcoin (BTC): On the daily line, Bitcoin has continuously received cross stars, hitting the $60,000 mark several times and under pressure. Today, the Asian market plunged sharply and fell below the support of the two major moving averages. BOLL was in a flat state, and the currency price fell further after falling below the support of the intersection of the two major moving averages of MA5/MA10 ($57,500). This trend is a bit like the continuous sharp drop at the beginning of the week. In the short term, focus on the resistance around the support resistance conversion point of $57,500, while below focus on the support around $56,000. The short-cycle KDJ technical indicators are moderately downward, and the upward movement energy of MACD in the attached picture is exhausted. It is expected that Bitcoin will maintain an adjustment trend.
In the past four hours, bitcoin has risen and fallen, and the three consecutive negative days have caused the price of the currency to fall all the way. The overall market is running in a downward channel, and the BOLL is slightly open, and the downward space is gradually extending downward with the adjustment of the market. The upper moving average MA5/MA10 crosses the dead cross to form resistance at 57,800 and 58,300 US dollars respectively, while the lower part focuses on the support of the lower track of BOLL at 56,800 US dollars. Once broken, it will increase the risk of short-term pullback. The short-cycle KDJ technical indicators are moderately upward, and the downward momentum of MACD in the attached picture is increasing. It is expected that Bitcoin will remain weak.
Short-term upper resistance level: 58000/59000 Short-term lower support level: 56500/56000
Short-term upper resistance level: 58000/59000 Short-term lower support level: 56500/56000
Ethereum (ETH): Ethereum can't stand the hype, and it finally got out of its own market on Saturday. The bulls rose strongly and once broke through the $1,850 mark, reaching the highest line of $1,868. Today, from the Asian market to the European market, the entire market showed a unilateral downward trend. After falling below the $1,800 mark, it continued to explore. The momentum of the bulls at the high level gradually weakened, but there are signs of rebound in the short term. There is resistance around the US dollar, and the focus below is on the support around US$1,750. For today's operation, the teacher's suggestion is to keep selling high and selling low.
Short-term upper resistance level: 1800/1820 Short-term lower support level: 1750/1720
