Yahoo Finance Bitcoin – Bitcoin Bucks the Trend Early. Will Institutional Money Help?
Bitcoin bucked the trend across the broader market by ending in the red on Sunday, with a 0.2% fall that partially reversed Saturday’s 0.5% gain. Bitcoin ended the week at $6,500, gaining 3.92% to partially reverse the previous week’s 14.3% slide.
A choppy start to the day saw Saturday’s late in the day reversal continue into the early hours of Sunday, with Bitcoin falling through the day’s first major support level at $6,461.47 and second major support level at $6,410.23 to an intraday low $6,370.2 before recovering back to $6,500 levels.
Through the 2nd half of the day, Bitcoin slid through the first major support level at $6,461.47 to an afternoon low $6,413.8 before breaking back through to $6,500 levels by the day’s end.
While the news wires were relatively silent through the weekend, supporting the net gains for Bitcoin and the broader market, focus is beginning to shift to the next phase of the cryptomarket movement, institutional money.
For now, Bitcoin continues to be touted as the primary beneficiary, which looks to be an accurate assessment, with financial institutions recently announcing plans to provide their clients with products to gain Bitcoin exposure, the announcements coming in the wake of Goldman Sachs’ decision to hit pause on launching its Bitcoin desk.
Whether the influx of institutional money will lead to a resurgence of Bitcoin’s dominance remains to be seen, though the reality is that such a limited product offering to an asset class will likely see existing cryptocurrency investors shun altcoins in favour of Bitcoin, drawn by the anticipated inflow of institutional money.
Does that mean that the cryptomarket is still some way off performing based on product offering and success in the real world?
It would certainly seem so. The focus on Bitcoin seems little different to banks offering a single stock such as Alphabet Inc. to their institutional clients in place of a full listing of U.S equities, though with one distinct difference. Bitcoin’s perceived success as an alternative to fiat money is limited at best, with other true cryptocurrencies offering far more competitive transaction speeds and fees that could ultimately topple the likes of PayPal and even Visa. Alphabet Inc. on the other hand is the parent of Google.
Should financial institutions be looking at Bitcoin alone or provide their institutional clients with greater market access, perhaps by assessing the more viable altcoins alongside Bitcoin?
For investors in general and the cryptomarket’s future, a wider offering will ultimately be a must, Bitcoin certainly not representative of the broader market, and that’s even before considering the influence of the Bitcoin whales on price action.
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At the time of writing, Bitcoin was down 0.03% to $6,496.4, with Bitcoin rallying at the start of the day to a morning high $6,543.3 before sliding to a morning low $6,465.1, the early moves seeing Bitcoin leave the day’s major support and resistance levels left untested.
For the day ahead, holding above $6,464 would provide support for another run at $6,500 levels to bring the first major resistance level at $6,557 into play, with $6,500 continuing to be a line in the sand for the bulls and the bears, Bitcoin holding on at the end of the weekend.
Failure to hold above $6,464 through the morning could see Bitcoin pull further back later in the day, with a fall through the morning low $6,465.1 bringing the day’s first major support level at $6,406.6 into play, a visit to sub-$6,400 levels possible should negative news hit the wires.
This article was originally posted on FX Empire
