- Bitcoin price shows new bullish momentum but faces an uphill battle as it climbs.
- Ethereum’s price rally continues despite several sell signals indicating that it is too broad.
- Ripple price consolidates as it prepares for the next step that could potentially reach new annual highs.
The price of Bitcoin has started its ascent, but the price of Ethereum is leading Monday’s rally after hitting a new all-time high today. XRP, on the other hand, is rolling up after its first ramp up.
Institutions view cryptocurrencies as investment assets
As new all-time highs are erected several times in 2021, more and more institutional investors have come to the idea of Bitcoin and other digital currencies as an alternative form of investment.
While many publicly traded companies have already invested in Bitcoin, MicoStrategy’s bet on Bitcoin at the end of 2020 may have been what sparked this influx of institutional investors.
Saylor tweeted on May 1 how Bitcoin, as an investment vehicle, trumps the S&P 500 in various ways.
To do this, Michael Saylor uses S&P’s 12-month return as the cost of capital and compares it with Bitcoin over multiple time periods.
The cost of capital is 47%. Consider the implications.
“The S&P 500 Index is a benchmark of American stock market performance, dating back to the 1920s. The index has generated a historical average annualized return of around 10% from its inception until 2019.” pic.twitter.com/rVVsP6rTuE
– Michael Saylor (@michael_saylor) May 1, 2021
To sum up, Saylor’s tweet shows that despite Bitcoin’s high volatility, its yields, Sharpe ratio, and Sortino ratio are much better in a long-term investment.
Bitcoin price climbs higher
The price of Bitcoin rebounded off a potential demand barrier that goes from $ 56,054 to $ 57,967, hinting at a breach in an immediate resistance level at $ 59,972. If that happens, marginalized investors could jump on the bandwagon, pushing BTC to retest the all-time high of $ 64,895.
Only a decisive close above this level would keep this recovery intact. However, failure to do so will indicate weak bullish momentum in the demand zone mentioned above. Therefore, short-term selling pressure could quickly invalidate this area of support, leaving the price of Bitcoin open at the risk of a further fall.
BTC / USD 1 Day Chart
Despite the current rebound, the momentum reversal indicator has flashed a preemptive upper signal in the form of a yellow candlestick on the daily chart. This sign indicates that a continuation of this momentum could produce a “perfect top” reversal signal that forecasts a correction of one to four candlesticks.
A breakdown of the 50% Fibonacci retracement level at $ 56,070 will invalidate the bullish thesis and initiate a bearish descent to $ 53,672.
Ethereum price ignores signs of selling as it hits new all-time high
The price of Ethereum recently hit an all-time high, surpassing $ 3,000. The 4-hour chart shows several sell signals in the form of red ‘one’ candlesticks, but each was threatened with extinction as the bulls continued to support the market value of the pioneer altcoin.
However, if this steady rally continues, ETH could reach the 127.2% Fibonacci extension level at $ 3,442.
4 hour ETH / USD chart
At the time of writing, the current four hour candlestick was flashing the B and C extensions simultaneously, suggesting that a retracement is long overdue. Therefore, if investors start to book profits, the price of Ethereum could slide 6.3% towards the demand zone of $ 2,860 to $ 2,956.
A breakdown of $ 2860 will trigger a new downtrend that may extend to the next support barrier at $ 2755.
Ripple price rolls up after second ramp up
Ripple erupted from a bottom inversion pattern known as the inverted head and shoulders on April 30. Since then, XRP has rallied nearly 19% to hit a blockade at $ 1.65.
Following this, the remittance token began to consolidate as a downtrend. A resurgence of buyers could break the $ 1.63 resistance barrier, allowing it to hit its expected target of $ 1.98, a new annual high.
4 hour XRP / USDT chart
Regardless of the bullish outlook, if the price of XRP fails to break through the supply level at $ 1.65 for the second time, investors might expect the transfer token to slide to the barrier. support at $ 1.42.