Bitcoin & Crypto Try to Reverse Losses, but Short-Term Hurdles Remain While Surveys Send Positive Signs
Major cryptoassets including bitcoin (BTC) and ethereum (ETH) trimmed earlier losses, and traded in positive territory for the past 24 hours Friday afternoon in Europe. Friday’s turnaround followed a sell-off on Thursday, with some analysts saying low volumes and technical resistance ahead could weigh on sentiment.
At 15:46 UTC, BTC stood at USD 46,576, unchanged for the past 24 hours but up by 6% for the past 7 days. At the same time, ETH traded at USD 3,440, up by 2% for the past 24 hours and 11% for the week.
The moves today followed a sell-off yesterday, after the price of bitcoin got rejected at the important 200-day moving average, which now sits at around USD 48,290. However, with strong support found in the USD 45,000 area from two prior market peaks, it appears as if BTC can avoid falling back below this key level.
Year-to-date price of BTC/USD on Binance:
From a fundamental standpoint, the reversal today was supported by a new survey that revealed 80% of surveyed institutional asset managers see a wider use case for cryptoassets, in particular as a diversifier in investment portfolios.
The survey, conducted by London-based crypto hedge fund Nickel Digital Asset Management, further found that money managers saw tokenization of other assets as a potential use case, in addition to using crypto as a way to make payments, both nationally and internationally.
The results of the survey came as strategists at the major asset manager VanEck said in a note on March 30 that BTC could reach a price as high as USD 4.8m if it replaces fiat currency to become the next global reserve asset.
The firm said they believe bitcoin has twice as much upside as gold, although it admitted that it is more likely that Chinese yuan will reach reserve currency status than that bitcoin will.
Meanwhile, more positive news for crypto came from the world of traditional finance this week with the Goldman Sachs Digital Assets Survey.
As reported by multiple media outlets, the survey found that 60% of the Goldman Sachs clients polled expect to increase their digital asset holdings over the next 1 to 2 years. In addition, the survey found that 51% of those polled already had some exposure to crypto, an increase from 40% last year.
Also, commenting on the crypto market during an earnings call for Galaxy Digital, the firm’s CEO Mike Novogratz said that he has become more “constructive” about crypto prices now than he was at the beginning of the year.
“It wouldn’t surprise me to see crypto significantly higher by the end of the year,” Novogratz said, citing “the adoption cycle I’m seeing” and “the way markets trade,” per Bloomberg.
Meanwhile, commenting in his latest newsletter, Quantum Economics founder & CEO Mati Greenspan said that the psychological resistance around USD 50,000 is still a “big hurdle” for bitcoin to overcome. “It's not an easy walnut to crack, and with the current volumes, it seems nearly impossible,” Greenspan said.
He added that due to low trading volumes across exchanges, a more likely scenario could be “a pullback and then a test of the support level at USD 45,000.”
And according to Greenspan, even that level is not likely to hold.
“I wouldn't expect that support level to hold up very well at all. However, you never really know,” Greenspan concluded.
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