Share:
  • Bitcoin price is consolidating on below-average volume.
  • The new offering by Morgan Stanley could see BTC advance further.
  • BTC slow embrace by the financial services industry is market bullish.

Bitcoin price is set to close March with the 6th consecutive positive month despite the quick retracement from all-time highs. The current momentum indicates that the bullish precedent will continue beyond March.

Morgan Stanley announces BTC is an investable asset class

Morgan Stanley announced to its financial advisors that wealth management clients will have access to BTC funds but limited to 2.5% of their total net worth. The announcement comes more than one month after Bloomberg News reported that Counterpoint Global, a unit of Morgan Stanley Investment Management, was evaluating whether to invest in Bitcoin.

The funds on offer to clients are run by Galaxy Digital, a firm founded by Mike Novogratz, and a third fund run by asset manager FS Investments and Bitcoin company NYDIG. 

This is another example of Wall Street’s shifting perception of Bitcoin, going from outright rejection to gradual adoption. BTC is now formally defined by Morgan Stanley as an investable asset class that can provide portfolio diversification because it has the regulatory framework, liquidity, and growing investor interest.

"For speculative investment opportunities to rise to the level of an investable asset class that can play a role in diversified investment portfolios requires transformational progress on both the supply and demand sides. With cryptocurrency, we think that threshold is being reached. A firming regulatory framework, deepening liquidity, availability of products and growing investor interest—especially among institutional investors—have coalesced."

Morgan Stanley stated it would not commit to recommending any particular cryptocurrency and that their wealthier clients should get educated on getting exposure and limit their Bitcoin investing to publicly traded products.

Bitcoin price trend will benefit long-term from deepening liquidity

For the second day in a row, BTC rebounds from the extended neckline of the head-and-shoulders bottom at $54,000. The support area also aligns with the rising trendline beginning February 28.

A continuation of the consolidation is expected in the near term, but a daily close above the February 21 high at $58,367 will confirm the consolidation is complete, and Bitcoin price will resume the rally into new highs.

Short-term resistance for the rally will materialize around the 1.382 and 1.618 extension levels of the February decline at $64,230 and $67,850, respectively. The more bullish projection has BTC reaching the 2.618 extension level at $83,204. It would be a gain of over 40% from current price levels. 

Note, the rally needs to be confirmed by the Relative Strength Index (RSI).

BTC/USD daily chart

BTC/USD daily chart

Critical to the bullish forecast is Bitcoin price holding the neckline on a daily closing basis. If the bellwether cryptocurrency slices through this level, it projects a swift decline to the 50-day simple moving average (SMA) at $47,546 followed by a test of the January 8 high at $41,986. 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Will Dogecoin (DOGE) price pull an XRP and rally 60% next week?

Will Dogecoin (DOGE) price pull an XRP and rally 60% next week?

Dogecoin price has been in a tight range bound movement since November 22. However, the recent recovery above the range low looks promising and hints at an explosive move for next week.

More Cryptocurrencies news

SEC Chair Gary Gensler’s latest call signals tough times ahead for crypto players

SEC Chair Gary Gensler’s latest call signals tough times ahead for crypto players

US Securities and Exchange Commission (SEC) chair, Gary Gensler, has hinted at tough times ahead for crypto players. In his testimony before the House Appropriations Subcommittee on Financial Service and General Government, Gensler advocated for additional infrastructure.

More Cryptocurrencies News

Crypto firms' de-banking escalates as banks reject applications due to liquidity and regulatory concerns

Crypto firms' de-banking escalates as banks reject applications due to liquidity and regulatory concerns

The crypto market has been facing hurdle after hurdle since Q2 2022 when Three Arrows Capital collapsed, which worsened in November 2022 following the bankruptcy of FTX. This led to a number of crypto companies falling.

More Cryptocurrencies News

Making a case for Binance Bicasso NFTs playing catalyst to BNB price recovery, $357 incoming?

Making a case for Binance Bicasso NFTs playing catalyst to BNB price recovery, $357 incoming?

BNB price is up three days in a row despite the legal tussle between the largest exchange by trading volume, its CEO Changpeng Zhao (CZ), and the Commodity Futures Trading Commission (CFTC). 

More Binance Coin News

Bitcoin: Breaking down key BTC levels to accumulate for Q2, 2023

Bitcoin: Breaking down key BTC levels to accumulate for Q2, 2023

Bitcoin price shows an interesting outlook as the first quarter of 2023 comes to an end. BTC has shown strength since day one of 2023 and has netted investors approximately 70% in returns.

Read full analysis

BTC

ETH

XRP