If Bitcoin remains in an uptrend, these altcoins are likely to outperform the other major cryptocurrencies this week.
The institutional interest in Bitcoin (BTC) has increased in the past few months, according to data from Grayscale Bitcoin Trust. If the trend continues at the same pace, by March 2021, GBTC would have purchased 75% of the newly mined Bitcoin during the period. By that time, its total holding of the top-ranked cryptocurrency on CoinMarketCap would increase to 3% of the total circulating supply. If this happens, it could be a huge sentiment booster for investors who believe institutional investment is the key for mass adoption.
Reddit co-founder Alexis Ohanian has said that he holds a percentage of his wealth in crypto and he does not want to change it. Ohanian believes that Bitcoin is a hedge due to the fact that several “OGs of Wall Street” have now entered the crypto space.
The long-term fundamentals for cryptocurrencies have been improving but the price is yet to catch up. Can the up move resume this week? Let’s study the charts of five major cryptocurrencies that could offer trading opportunities this week.
Bitcoin (BTC) has been trading inside an ascending channel, which shows that the medium-term trend is up. However, the short-term has stalled as the price has dipped below both moving averages.
The BTC/USD pair has formed a symmetrical triangle, which usually acts as a continuation pattern. The 10-day exponential moving average is sloping gradually and the relative strength index is just above the 50 levels, which suggests a balance between supply and demand.
Tezos (XTZ) has been trading inside an ascending channel, which shows the path of least resistance to the upside. However, the bulls have been facing stiff resistance at the downtrend line.
Cardano (ADA) continues to be in an uptrend. The altcoin resumed its up move following a breakout of the recent highs at $0.0543484 on May 19. However, the sharp drop on May 21 dragged the price back below the breakout level.
Chainlink (LINK) has largely been range-bound for the past few days. Both the moving averages have flattened out and the RSI is just above the midpoint, which suggests a balance between demand and supply.
Ethereum Classic (ETC) is currently consolidating inside a symmetrical triangle. Both moving averages are flat and the RSI is just above the 50 level, which suggests a balance between buyers and sellers.