TradFi Continues Dipping Toes into Crypto | What the Blxck?!
From Goldman Sachs to Ray Dalio, Traditional Financiers Dive-In.
Topic at a Glance…
· Traditional finance institutions and players continue to load into crypto, even amongst the FUD campaign in response to Chinese “ban” news
· Technical analysts eye a breakout for Bitcoin as a W-shaped price bottom begins to take form
As the fear, uncertainty, and doubt (FUD) begins to dissipate from the cryptocurrency markets, the wreckage left behind holds all of the signs that $BTC Bitcoin and crypto as a whole is here-to-stay.
Whales Continue to Whale
According to data from the analytics platform Glassnode, so-called Bitcoin whales – those with who hold between 10,000 and 100,000 coins – purchased an additional 122,588 Bitcoin during the crash last week. “Dip-buying” allowed these large players to scoop up large sums, with the founder of Three Arrows Capital telling Bloomberg:
“People that were borrowing money to invest, they were wiped from the system [...] Every time we see massive liquidation is a chance to buy. I wouldn’t be surprised if Bitcoin and Ethereum retrace the entire drop in a week.”
It should be expected for this trend to continue over the next few weeks as the market makes a healthy recovery after trimming the fat of the overleveraged traders. And this healthy recovery pattern has many eyeing a potential supercycle in the near future.
Technical Analysts Eye Breakout
According to reporting by CoinTelegraph, Bollinger Bands founder John Bollinger said “Bitcoin's rebound from $30,000 to $42,000 ‘logical’ given the significance of the latter price level.” He also went on to add, “upper bound could be forming the middle peak of a W-shaped price formation — a double-pronged bottom followed by an exit to the upside.” This means that in the near future, its likely a movement to $42,000 appears, with a short sideways trajectory indicating a further bull cycle, or bearish movement.
This good news from technical analysts is even better when coupled with the fact that institutional investors and good sentiment continue to pile on. Goldman Sachs presented a bullish opinion on Coinbase, as well as DeFi as a future competitor. With a price target on COIN stock set at $306, the analysts for the financial giant did point out that “we believe they represent important proofs of concept for more complex applications in the future,” when referring to DeFi applications.
Overall, there is ample reason to don your rose-colored glasses when viewing the cryptocurrency and blockchain marketplace.
As always, What the Blxck?! editorials should not be considered or construed as financial advice.