The crypto industry is experiencing the best time in its history, prices are literally growing, and most importantly, there is an adaptation among institutional market participants. Having built the work on the analysis of general crypto interest among qualified market participants, I noticed a very interesting activity back in the fall of 2020.
It's no secret that in the fall of 2020, many institutional investors, funds, banks, insurance companies, etc. actively bought up the cryptocurrency, but it turns out that interest in innovative assets was even larger.
Shares of mining companies listed on traditional exchanges for qualified market participants began to rise sharply in price, that is, traders approached this area of activity from the opposite side, but at the same time showed a stunning interest in the crypto industry.
Scale in numbers
An example of this activity was the shares of the largest mining companies - Hut 8, Hive Blockchain, Marathon Digital Holdings, Riot Blockchain - whose growth is off the charts.
Hut 8 +1600%
Hive Blockchain +1600%
Marathon Digital Holdings +2200%
Riot Blockchain +2700%
The analysis was carried out from October 2020 to February 2021, this is the maximum growth. March was affected by a correction.
I am amazed at the small market participants who still deny the reality associated with the crypto market. It is worth conveying a simple idea: cryptocurrency is an excellent tool for speculation, time will tell the long-term perspective, although there is already significant progress in this direction. There is no need to omit the opportunity to make money, the crypto market is now literally giving out easy money.
Let's go back to institutional investors who happily collect trading volumes of weak hands on corrections. According to Coinbase data, 14,666 BTC were withdrawn in multiple transactions today. This happened shortly after the price of Bitcoin dropped to a two-week low of about $53,000. The mechanism of large players will remain unchanged, they collect volume and withdraw, and, really, why allow small participants to own such a valuable asset, just like in ordinary life.
Bank of America provided a very interesting analysis of the impact of dollar injections into Bitcoin, of which, accordingly, only $93 million is enough to raise the price of BTC by 1%. Bitcoin is very sensitive to an increase in dollar demand: a net inflow of $93 million will increase the price of the first cryptocurrency by 1%, while it will take $2 billion to achieve the same effect in the gold market.
Bitcoin Longs vs Shorts:
Longs (95.94%): $1,626,360,258
Shorts (4.06%): $68,798,940
Following from the indicators on trading operations relative to the leading cryptocurrency exchanges, it can be seen that long positions again prevail in Bitcoin, they occupy the lion's share of the market.
What is happening in the market at the moment?
It is worth starting with the loud news from the well-known Elon Musk, who said on Twitter that you can now buy a Tesla car for Bitcoins! He added that Tesla uses only internal open source software and directly manages Bitcoin nodes. The received Bitcoins will be stored as Bitcoins, and not converted to fiat currency. The option to pay in BTC will be available outside the US later this year.
We have yet another confirmation of the direct stimulation of society to new types of assets and their use in everyday life.
The news from Elon Musk has become a driver, and, perhaps, it will get us back to the upward cycle after the correction.
It is worth recalling that Elon Musk owns more than $5 billion in Bitcoin through Tesla, SpaceX, and personally.
Analyzing the trading chart of the first cryptocurrency (BTC), you can see that the local maximum is in the area of the coordinate $61,788, relative to which a correction of 14% occurred. The distance to the maximum is small, market participants will be able to overcome it without undue effort very soon.
Our main goal, as before, is the psychological level of $100,000 per 1 BTC, where, with the current information background, we can see this value even before the fall, and possibly even earlier.
It is worth considering that the crypto market is a very volatile place, you should always be on the lookout and do not forget to skim the cream off your big profits.
General background of the crypto market
Analyzing the total market capitalization of the crypto industry, we see that during our last article, the volume of the cryptocurrency market peaked at $1.812 trillion, this is again the absolute maximum of the entire industry.
The $2 trillion of market capitalization, which I wrote about at the beginning of the year, is not an analyst's fantasy, theory, or anything else, this is just a technical moment that will come to the market very soon.
Total Market at the moment is: $1.760 trillion.
Bitcoin retains its dominant position in the market at 60.0% of the Total Market, where in terms of numbers it is $1,051,150,259,114.
The index of emotions (aka fear and greed) of the crypto market is at the level of 65 points, this is not the FOMO* (Lost Profit Syndrome*) area, where an insane amount of capital and new participants are pouring into the market. In fact, the movement at the peak of the market, with a slight correction, is already taken for granted. It is worth considering, as soon as we update the maximum for Bitcoin, the index will immediately jump to the levels of 80-95 points.
Indicator analysis
Analyzing different sectors of time frames (TF), it can be seen that the indicators of technical instruments in a four-hour period signal a buy due to the rising year of the current day. The daily time frame is still focused on the correction from the peak of the market, signaling a sell. The weekly period, as before, is focused on an upward trend, signaling a buy.
