Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Bitcoin (BTC), Ethereum (ETH) Remain Choppy, Hedge Funds Embrace Cryptocurrencies

Bitcoin (BTC), Ethereum (ETH) Remain Choppy, Hedge Funds Embrace Cryptocurrencies

Nick Cawley, Strategist

Bitcoin (BTC/USD), Ethereum (ETH/USD), and Alt-Coin Analysis and Charts:

  • Bitcoin, Ethereum trapped in a range.
  • Heavyweight hedge funds enter the cryptocurrency space.
Cryptocurrency Trading
Cryptocurrency Trading
Recommended by Nick Cawley
Get Your Free Introduction To Cryptocurrency Trading
Get My Guide

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

A to Z Crypto: Demystifying the Top Cryptocurrency Jargon

Traders of all levels and abilities will find something to help them make more informed decisions in the new and improved DailyFX Trading Education Centre

What are your views on Bitcoin (BTC) and Ethereum (ETH) – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES