- MicroStrategy aims at purchasing more Bitcoin with the $1 billion stocks offering of its NASDAQ:MSTR.
- Bitcoin loses support at 440,000, risking another dip toward $35,000.
- Ethereum holds above crucial support at the 100 SMA as bulls look toward $3,000.
- Ripple extends consolidation, as highlighted by the four-hour Bollinger Bands.
Institutional interest in Bitcoin and other cryptocurrencies seems to be gaining momentum. This follows announcements from several large companies aiming at increasing their exposure to Bitcoin and other digital assets.
For instance, MicroStrategy, a leading business intelligence firm, has filed with the Securities and Exchange Commission (SEC) for a $1 billion stocks offering of its class A common stock, NASDAQ: MSTR. The funds will go toward “general corporate purpose, including the acquisition of Bitcoin.”
The critical announcement came after hours of completing another $500 million fundraise in corporate bonds to increase exposure to digital assets.
Meanwhile, Grayscale has continued with its frequent purchases of Bitcoin and other digital assets. Grayscale Investments is the most prominent digital fund manager globally, currently with over $35 billion worth of Assets Under Management (AUM).
Notably, the asset management firm purchased a total of $2 billion in different cryptocurrencies, including BTC, Ethereum, LINK, Zcash, and Litecoin, among others.
Bitcoin price not out of the woods yet
Despite the recent uptake of Bitcoin by major corporations and tweets by Elon Musk, the pioneer cryptocurrency can barely hold above $40,000. The uptick on Monday touched $41,130 before a retreat followed.
At the time of writing, BTC trades at $39,840. Finding higher support is the bulls’ priority because it would allow them to focus on another swing upward.
The Relative Strength Index (RSI) on the four-hour chart affirms the bearish outlook. Hence, BTC will likely plunge to the 200 Simple Moving Average (SMA). If push comes to shove and losses soar, investors should brace for declines toward $35,000.
BTC/USD four-hour chart
A potential golden cross pattern (the 50 SMA crossing above the 100 SMA) on the chart above could see Bitcoin hold at higher support and perhaps reclaim the ground above $40,000.
Ethereum secures key support as uptrend to $3,000 gains traction
Ethereum has settled above the 100 SMA on the four-hour chart, ensuring that retreats back to $2,400 are avoided. On the upside, the resistance at $2,700 must come down for gains toward $3,000 materialize.
The Moving Average Convergence Divergence (MACD) indicator cements the bulls’ presence in the market. In addition to the indicator moving into the positive region, the MACD line (blue) recently crossed above the signal line, collectively sending a formidable call for investors to increase their entries.
ETH/USD four-hour chart
Meanwhile, closing the day above $2,600 could see Ethereum hold onto the prevailing market stability. On the upside, a break above $2,700, and by extension, the 200 SMA will bolster Ether to $3,000.
On the downside, losing the 100 SMA will poke holes in the boat, allowing Ethereum to sink to the support at $2,400 or the primary anchor zone at $2,100.
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Ripple’s consolidation could culminate in massive breakout
The international money transfer token XRP teeters at $0.88 at the time of writing. Its immediate downside is defended by the 50 SMA and the Bollinger Bands’ middle boundary. Gaining and sustaining the uptrend above $0.9 is a challenging task for the bulls; hence, the consolidation.
A four-hour close above the 100 SMA may validate the upswing to $1, but a tighter Bollinger Bands squeeze is required. Moreover, as the MACD gradually ascends into the positive region, bulls tend to gain momentum. In other words, the breakout path will likely be upward.
XRP/USD four chart
Note that a four-hour close below the area between the upper and the lower bands will invalidate the uptrend in favour of another dip. Similarly, support is foreseen at $0.8, but Ripple could spread the losses to $0.65 (May’s support).
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