Bitcoin (BTC), Ethereum (ETH) Remain Choppy, Hedge Funds Embrace Cryptocurrencies
Bitcoin (BTC/USD), Ethereum (ETH/USD), and Alt-Coin Analysis and Charts:
Some high profile hedge funds are entering the cryptocurrency market, according to various media outlets including Bloomberg and TheStreet.com, adding further respectability to the space. According to reports, Soros Fund Management has now started trading Bitcoin, while Point72 Asset Management is looking to hire a head of cryptocurrencies. In recent weeks other hedge fund luminaries have been voicing their support for Bitcoin, and the space in general, with Paul Tudor Jones recently telling CNBC that he wants 5% of his funds in Bitcoin, as a ‘portfolio diversifier’, while SkyBridge Capital and Fidelity have filed Bitcoin ETF applications with the SEC. In the last few days, ARK Investment said that it will market the 21Shares Bitcoin ETF if their application is successful.
The cryptocurrency market continues to trade in a choppy sideways range with little in the way of drivers seen to force a move either way. Important support still sits around $30k while $36.7k is seen as initial, short-term resistance. Above here there is a grouping of prior highs between $14k and $42k
Bitcoin (BTC/USD) Daily Price Chart
Ethereum has slightly outperformed Bitcoin in the last week, pushing back from a $1,720 low to a double-high at $2,280 before today’s sell-off back down to $2,115. The three recent lows between $1,700 and $1,730 should provide reasonable support in the case of any further bearish price action, while ETH needs to break above a cluster of four recent highs around $2,640 to instill further short-term confidence.
Ethereum (ETH) Daily Price Chart
The Ethereum/Bitcoin spread highlights the recent ETH out-performance with the spread bouncing back from 550, a level that has now been tested three times. The downward trend from the recent 775 top has now been broken convincingly. The spread may now settle between 550 and 650 until the overall tone of the market is decided.
Ethereum/Bitcoin Daily Spread Chart
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