FX.co ★ Bitcoin moves to key value level

Bitcoin is moving to a key value level, but it only causes a surge of panic among investors. A 200-day moving average, which is of great importance, may have an influence on bitcoin's move or rise in the near future. But before grasping the technical input, we should mention that more institutional and big retail players turn to cryptocurrency and start to put their trust in it. It is a sign of a bullish signal for the market, although in mid-term period.

I have already referred to the companies investing in cryptocurrencies. Now billionaires take an interest in it. According to the latest speculations, Simon Nixon is thinking of increasing his investments in cryptocurrency as he hopes to make a huge profit. More wealthy people make use of digital assets now, and Mr. Nixon does not probably want to be behind. His family office Seek Capital is trying to raise cryptocurrency investments because of its value in future. Adam Proctor, his fund manager, has recently stated this fact. According to Proctor, they have launched a campaign to seek a cryptocurrency expert.

This year, the family offices' interest in investing is only gathering pace, while the volatility stays at a record level. Apparently, more rich people are ready to take a risk and compete in this race as the market seems too profitable. Bitcoin, for example, after its biggest drop this May, has risen more than 50% since mid-July. Other cryptocurrencies, including Ethereum, Cardano ADA and Dogecoin, have also surged thanks to signs of mass acceptance.

Goldman Sachs Group Inc. has recently conducted a survey and found that nearly half of family offices plan to add digital currencies to their more stable investments in stocks and bonds. This interest is primarily due to the ability to hedge against the risks of high inflation and prolonged low interest rates.

Last November, Mexican billionaire Ricardo Salinas Pliego announced that he had invested some of his liquidity in bitcoins. Michael Novogratz and Christiana Angermeier are the founders of the Cryptology Asset Group fund, which in June pledged to allocate $100 million to invest in cryptocurrencies over the next two years.

It is rather curious how much money these family offices have at their disposal. According to the Campden Wealth study, the family office assets worldwide were estimated at $6 trillion in 2019.

As far as the technical analysis of bitcoin is concerned, its rebound to the $45,900 level will play a key role in the trading instrument's further short-term direction of the. It is exactly the point a 200-day moving average goes, which has a big impact on institutional investors. Breaking this level, BTC will push to the minimum of $42,500, and then it is very close to $37,300. It is possible to discuss a new upward wave of bitcoin after its breaking the resistance limit of $50,400 with the subsequent renewal of $54,400 and $58,000.

As far as the technical analysis of ethereum is concerned, we stay in a rigid corridor, which is a good prerequisite for the trading instrument's further rise due to position accumulation. A break in $3,300 would surely turn ETH to the highs of -$3,600 and $3,890. The nearest major support level is seen around $3,000. Its break will fall the trading instrument to the lows of $2,700 and $2,440.