- Bitcoin (BTCUSD on xStation5) surged above $8000 over the weekend for the first time ever
- Hedge funds suggest they could add Bitcoin to their investment portfolios when CME launches future contracts
- Other cryptocurrencies follow Bitcoin, Ethereum (ETHUSD) and Ripple (XRPUSD) could deserve the most attention
The last week on Bitcoin was exceptionally tumultuous as there was huge volatility with resulted in a new all-time high above $8000. Bitcoin climbed subtly above $8100 on Sunday according to the data delivered by coindesk.com. Even as buyers have taken a step back since then, the most famous digital currency is holding onto a round $8000 level suggesting that there is still some fuel to pro up the ongoing upward move. The main reason which could have contributed to an increase in Bitcoin (and other virtual currencies as well) was rising interest from hedge funds. Namely some of them are considering to add Bitcoin to their investment portfolios once the CME launches future contracts on the cryptocurrency which in turn is to take place as soon as next month.
For instance, we already got the first announcement from one of the largest hedge funds in the world last week. Luke Ellis, the CEO of Man Group (a UK-based investment management firm), said the firm would include Bitcoin in its “investment universe” if Bitcoin futures are successfully launched. There is no doubt that the launch of Bitcoin future contracts by an established exchange will likely translate into wider participation in the cryptocurrency trading by other Wall Street firms and therefore it could dampen volatility for the virtual currency, which is known for its wild price swings.
Bitcoin (BTCUSD) could be setting the stage for another increase. Source: xStation5
Technically the Bitcoin price has barely moved beyond $8000, however it’s managed to stay above its local support area nearby $7400. Using Fibonacci retracements one could second-guess that buyers might eye $8600 as their subsequent target – this level is underpinned by a 123.6% retracement of an upward wave which began from the bottom of the last week’s U-turn. Thus until the price hovers above $7400 a continuation of the ongoing pick-up seems to be the most plausible scenario.
Ethereum (ETHUSD) might be in a early phase of a bounce as it’s just left a triangle formation. Source: xStation5
Ethereum appears to be one of the most noteworthy cryptocurrency beside Bitcoin. First and foremost the cryptocurrency has finally broken out of a triangle formation which has been obstructing larger moves for a some time. Consequently the price could march toward $390 which needs to be beaten in order to allow buyers to pursue their rally. The final target as for now could be found somewhere nearby $500.
Ripple (XRPUSD) has bounced off its pivotal support which could herald further increases. Source: xStation5
Finally, Ripple could be of note as well as the price has managed to remain above its crucial support area at around $0.216 and therefore a move to the upside could be anticipated. The price could rise in the vicinity of two important resistances at $0.295 and $0.315 respectively. Once buyers deal with them successfully, it could suggest further gains ahead.