Bitcoin Market Cap Surpasses $1 Trillion — Analysis, 22 Feb
Bitcoin’s market capitalization has surpassed $1 trillion — a decisive psychological threshold that was unimaginable just 5 or 6 years ago. One of the reasons behind the substantial price increase is the start of the institutional investors’ phase — a period when big hedge funds, banks, and investment companies start entering the market. For example, last week, Rick Rieder, BlackRock’s Managing Director, announced in an interview on CNBC that they had begun “to dabble a bit” into Bitcoin:
However, Reider didn’t reveal how much money the largest asset manager in the world would invest in crypto.
Nevertheless, this is just the beginning of the institutional investor’s phase of this bull trend, and a lot of money is going to flow into the crypto world. As Binance CEO Changpeng Zhao (CZ) mentioned in his recent interview on Bloomberg, “this is just a reflection of how mainstream Bitcoin has become” and according to him, “we’re just seeing the tip of the iceberg.” Cryptocurrency enthusiasts highlighted that, so far, just 11 big companies (including Tesla and BlackRock) have entered the market — a tiny portion of all those 350,000 companies around the world that are potential Bitcoin buyers. Therefore, CZ said he wouldn’t be surprised if BTC reaches $1 million or even $10 million in the long run.
Meanwhile, Ethereum co-founder and Cardano creator Charles Hoskinson congratulated the crypto community on the $1 trillion Bitcoin market cap, which he defined as a signal that crypto is here to stay; he also believes that the blockchain revolution is already inevitable.
After another extremely positive week, the Monday market starts with a price pullback. At the time of writing, according to Coin360.com, one Bitcoin costs €44,491.33 (-6.31%), one Ethereum — €1,480.85 (-8.91%), and one LINK — €25.63 (-10.29%):
Now let us analyze the price charts of the leading cryptocurrencies against the euro.
BTC/EUR
In the weekly chart (1W), BTC/EUR has formed a Three White Soldiers candlestick formation:
According to the technical analysis theory, Three White Soldiers is a bullish candlestick pattern indicating a potential price increase. Therefore, in the weekly time frame, the price will most probably continue to increase.
However, it is worth paying attention to the 30-day Moving Average (MA) in the daily time frame:
We consider the 30-day MA as strong support for the price of Bitcoin. If the price pulls back to the 30-day MA, a subsequent rebound and trend renewal are relatively possible.
ETH/EUR
In the 4-hour chart (4H), ETH/EUR faced resistance at the upper line of the Ascending channel, and now it is declining towards the lower line:
We stick to the point of view on ETH/EUR outlined in our previous analysis. In case the price bounces off the lower line of the channel, a favorable moment to enter the market may appear.
It is worth mentioning that the 30-day MA is also going to support the price of Ethereum. As can be seen in the chart, it is just below the lower line of the channel.
LINK/EUR
In the weekly time frame (1W), LINK/EUR formed a Long-Legged Doji:
Theoretically, this candlestick signals indecision about the future direction of the price of Chainlink. That’s why we will stay away from the market until the situation clarifies.
In the daily time frame (1D), the closest support for LINK/EUR is at the 30-day MA or a level of approximately €22.70:
In our estimation, if LINK/EUR drops to the 30-day MA, a subsequent rebound may take place.
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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex’s content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.
Originally published at https://bitvalex.com.
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