Crypto Industry News:
S&P Dow Jones Indices has launched three new cryptocurrency indices: S&P Bitcoin Index, S&P Ethereum Index and S&P Crypto Mega Cap Index (a combination of Bitcoin and Ethereum) will allow retail investors to easily gain exposure to these two powerful cryptocurrencies.
Investors have long waited for a traditional financial product to track cryptocurrency prices. S&P announced last year that it would create a cryptocurrency index in 2021, and it has lived up to that promise with its latest launch.
The new indices can be used as tracking and comparison tools in the current financial world. More reliable pricing from an authoritative source will prevent investors from having to connect to potentially dubious APIs. They do not necessarily provide correct pricing data. S&P hopes this move will make it easier for investors to access a new class of crypto assets, and says it will reduce some of the risks associated with their speculative and volatile nature.
There is still no global product that retail investors can directly purchase to get exposure to real cryptocurrency prices like ETFs. The closest to that is the GBTC, which, however, is not always the exact measure of exposure as its premium fluctuates strongly. However, the S&P movement serves to further legitimate and strengthen the position of the cryptocurrency industry in the world of stocks and ETFs. This whole industry is just warming up to the adoption of cryptocurrencies.
Technical Market Outlook:
The BTC/USD pair has been trading under the level of $55k again and the recent high was made at the level of $58,884. Since then, the market pulled-back towards the level of $53,000, which is the technical support for the bulls, but a new local low was made at the level of $52,901. Despite the new low, the pull-back is still not bigger than the last one (olive rectangles area on chart), so the bulls still have the chance to bounce higher and suspend the momentum. The key short-term technical support is $52,620 and $51,239.
Weekly Pivot Points:
WR3 - $73,274
WR2 - $65,664
WR1 - $62,211
Weekly Pivot - $54,445
WS1 - $50,865
WS2 - $43,394
WS3 - $39,732
Trading Recommendations:
Event despite the recent correction from $64,789 to $47,060 the bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. Any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $50,000 is clearly broken on the daily time frame chart (daily candle close below $50k).