Tesla is openly long Bitcoin again, how long will the Bitcoin bull market last?
If there's one thing whose price swings have most rattled investors' nerves lately, it's Bitcoin. Since the end of January this year, the market price of Bitcoin has risen rapidly, soaring from $30,423.10 to a high of $57,492.90, an increase of nearly 90% in just one month. In mid-March, the price of Bitcoin soared to more than 60,000 US dollars, which was more than 10 times higher than last year's low price, and then fell back again. Bitcoin is also popular in China. Some people regard Bitcoin as an "alternative asset" and some young people are eager to try it. Risk, it is recommended that relevant parties strengthen supervision.
Demand from U.S. institutional investors has declined slightly, but European funds are still buying, according to digital asset investment manager CoinShares. Inflows into institutional crypto products totaled $99 million for the week ended March 20, according to Coinshares’ March 22 weekly fund inflow report. The data showed a sharp drop in institutional demand, with inflows down 59% from $242 million in the previous week. However, the researchers noted that assets under management in top institutional investment products hit a record $57 billion. The report also noted that while demand in the U.S. fell, institutions in Europe and Canada continued to buy last week. The daily trading volume of Bitcoin-related products also fell by about 35% to $713 million per day, compared with an average daily trading volume of $1.1 billion in 2021. However, the trading volume of the digital asset remained stable at $11.8 billion per day. With massive inflows into ethereum in February, institutions appear to be setting their sights on bitcoin again, with $85 million entering bitcoin funds last week, compared with just $8 million inflows into ethereum-based products. CoinShares noted that there has been little interest in BNB, XRP, and BCH offerings. Grayscale remains the market leader in institutional investing, with $44.2 billion in total assets under management, according to a March 23 tweet from Grayscale. 84% of that was invested in Grayscale’s Bitcoin Trust.
In fact, since the sharp drop of Bitcoin in mid-March last year, the SSR index has always been lower than 25%. This is related to the marginal decrease in supply after the reduction of Bitcoin production on the one hand, and on the other hand to the continuous issuance of stablecoins. According to DApp Total's monitoring of the stablecoin market, the current total market value of stablecoins is about 59.68 billion US dollars, which is nearly 10 times higher than the 6.15 billion US dollars on March 12, 2020.
Look at the international news: the U.S. dollar index DXY broke through 92.506, a new high since November 24 last year. Tesla CEO Elon Musk confirmed on Twitter that it is now possible to buy Teslas with Bitcoin. Bitcoin payments will be made available outside of the U.S. later this year, and bitcoins paid to Tesla will be retained and not converted to legal tender. Tesla uses only internal and open-source software, and directly operates Bitcoin nodes. Today’s Bitcoin surge in the European market was due to Tesla’s news that Bitcoin fully supports the purchase of Tesla cars, but such news is understandable for the current Bitcoin. It is not the first time that Tesla has made clear the payment of Bitcoin, so it is only a short-term increase. Every time Bitcoin has a market decline, Tesla and Musk will come out with news to stabilize the price of Bitcoin. This is also the case. Why do many currency enthusiasts discuss that Bitcoin belongs to Tesla.
——————————Bitcoin technical aspects
Looking at the daily price trend chart, Bitcoin received a cross star, ending its 2-game losing streak, but the kdj indicator is still below the 50-axis price, and the dif indicator’s fast and slow line crosses downwards to drive the macd’s green downward energy to continue to increase. Increment, on the whole, the downward momentum of Bitcoin has formed. It depends on whether the key price support of $53,000 can be effectively broken. It is also the key support of the five-day moving average, so the author recommends paying attention to the defense of this price. Looking at the 4-hour market price chart, Bitcoin began to fall continuously after charging a hanging man at the price of 55,800 US dollars, and the cross of the fast and slow lines of the dif indicator drove the green energy of macd to continue to increase, while the golden cross at the bottom of the kdj indicator combined to run upwards, see Bitcoin After falling below the middle rail of the Bollinger Band for four hours, it began to move around the price of the middle and lower rails, so the range of $57,000 is already a key suppressive position this week. As the U.S. ten-year U.S. bond yield fell below 1.6%, it hit a new low for a week, which led to an increase in global selling, and the decline in Bitcoin was also affected. In the morning, the grayscale news announced that the Bitcoin ETF maintained its attitude on the official website , and Yellen once again warned against the use of digital currency for illegal financing, and the People's Daily pointed out that the low level of Bitcoin that does not have legal currency represents a bad data, so from the news or technical point of view, Bitcoin is maintaining a downward signal , and the most critical thing this Friday is the quarterly contract delivery of Bitcoin, so the market selling volume is bound to increase, and the risk of falling will also increase. It is necessary to be vigilant when Bitcoin falls below the price of 53,000 US dollars.
Looking at the price trend of Bitcoin at 1:00 am on March 24, Bitcoin began to fall after the highest price rebounded at 55,800 US dollars. This price position is also exactly the pressure of the price on the Bollinger Band for 1 hour. After receiving this price pressure, it began to fall continuously. And it hit the first-line rebound of 53,700 US dollars. This price also happens to be the support of the lower track of the Bollinger Band, so the price range of Bitcoin in the Asian-European market remains in the range of 56,000 to 53,000. If it reaches $53,000, then Bitcoin needs to look at the 50,000 integer mark range. Comprehensive conclusion Bitcoin investors suggest that the bottom 53,000 US dollars consider doing a long, look at 800 to 1,000 points, and the top of 56,500 US dollars consider a short 800 to 1,000 points.
From 18:00 on the evening of March 24th to 18:00 on the evening of March 25th, Bitcoin operation strategy: short at $58,200, rebound at $58,800 to cover short positions, target at $57,000 to $56,200, stop loss at $60,000, the strategy can only be used once, no Can be reused.
————————————Ethereum technical analysis
Judging from the daily market price trend chart, Ethereum received 4 consecutive declines, and fell below the key price support of the middle rail of the Bollinger Band, while the kdj indicator continued to maintain the 50-axis price dead cross combination, and the dif indicator fast and slow lines crossed to drive MACD’s green falling energy continues to increase and increase in volume. Comprehensively judging the recent rebound of Ethereum is to consider the idea of shorting the layout, and it can be seen that Ethereum’s $1,700 is suppressed by the dividing line. Looking at the 12-hour market price trend chart of Ethereum Ethereum has been supported around $1,650 many times, and it has been touched many times without falling below. In the short term, the high-level short-term idea of Ethereum is more reasonable. After all, the dif indicator crosses downwards to drive the macd green decline energy to continue to increase. So in general, these two days Ethereum is in a sideways stage. Looking at the 3-hour market trend chart, the price of Ethereum has remained around $1,722 in the past 24 hours, and it has fallen rapidly after breaking through $1,700, and the bottom cross of the fast and slow lines of the dif indicator drives macd The energy of the green decline is shrinking, and the rebound and rise can only focus on the price of 1730 US dollars.
From 18:00 on the evening of March 23rd to 18:00 on the evening of March 24th, the Ethereum operation recommends shorting at $1,753, rebounding at $1,777 to cover short positions, the target is $1,720, breakout at $1,700, and stop loss at $1,798. A strategy can only be used once and cannot be reused.
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