One of China’s Big Four Banks Enters Crypto Market — Price Analysis, 16 Nov 2020 | by Bitvalex | The Capital | Nov, 2020


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Last week another big institutional player decided to enter the crypto market. The China Construction Bank, one of China’s Big Four banks, is planning to sell $3 billion worth of debt on a blockchain, according to South China Morning Post. Once launched, the digital bonds are set to be traded on a crypto exchange located in Labuan, Malaysia. Hence, cryptocurrency users will be able to buy these digital securities by paying in Bitcoin.

Many financial experts expect that soon the tokenization of stocks and bonds will intensify, and it will make this class of financial assets more accessible to retail investors. Moreover, it will create an additional bridge connecting the traditional financial system with the cryptocurrency world.

Another example of the growing positive attitude towards cryptocurrency among private banks all over the world is a recent statement by CitiBank Managing Director and former FX technician Tom Fitzpatrick that Bitcoin is the ‘new gold’ and it may reach $318,000 by December 2021:

Source: Twitter

The current positive sentiment in the cryptocurrency market is supporting the bulls to defend the recently conquered price levels. At the time of writing, according to Coin360.com, one Bitcoin costs €13,545.36 (+0.71%), one Ethereum — €381.87 (-1.82%), and one LINK — €10.38 (-1.97%):

Source: Coin360.com (Daily crypto market performance)

Now, let us check the price charts of the leading cryptocurrencies against the euro.

BTC/EUR

The daily chart (1D) of Bitcoin is showing strong bullish momentum — BTC/EUR has exited the Rising Wedge:

A good trading idea is to wait for price pullback, and if the price bounces off the upper line of the wedge, then it will be the right time to open a long position. The stop-loss (SL) should be just below the upper line of the wedge, and the take-profit (TP) should be at a level close to the previous local high.

ETH/EUR

In the 4-hour chart (4H), ETH/EUR continues to move forward within the trajectory of the Ascending channel (uptrend) — an indicator that the bulls are still controlling the market:

However, it is facing some resistance at a level equal to the highest point of the Inverted Ascending Triangle.

Similar to the logic applied to the price chart of Bitcoin, if ETH/EUR drops to the lower line of the Ascending channel and it rebounds, there will be a favorable opportunity to enter the market and open a long position. The stop-loss (SL) should be set slightly below the lower line of the channel, and the take-profit (TP) — at a level close to that of the last local high.

LINK/EUR

In the 4-hour chart (4H), LINK/EUR is fluctuating within an Ascending channel (uptrend) as well:

However, we would like to highlight that contrary to the price charts of the other major cryptocurrencies, in the weekly chart (1W), last week LINK/EUR formed a bearish candlestick:

Moreover, the local high from the last week could not surpass the previous weekly local high. That is why we have to be very cautious and will abstain from any trading ideas at the moment.

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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex’s content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.



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