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

Near Protocol Price Prediction: NEAR pumps 10% as investors envision another buy opportunity here

Near Protocol Price Prediction: NEAR pumps 10% as investors envision another buy opportunity here

Near Protocol (NEAR) price is trading with a bullish bias, with a sustained series of higher highs since the last week of January. With investors groping for discounted entry points, NEAR could correct before the next leg up.

More Cryptocurrencies News

Ethereum price teases with a breakout, eyes $3,200 milestone as ETH bulls show resolve

Ethereum price teases with a breakout, eyes $3,200 milestone as ETH bulls show resolve

Ethereum (ETH) price consolidation within the ascending parallel channel has lasted since October, with the Proof-of-Stake (PoS) token making multiple attempts to breakout. As it stands, Ethereum continues to outperform Bitcoin (BTC) with double the gains.

More Ethereum News

Solana Price Prediction: SOL could easily go all the way back to $79.49 low

Solana Price Prediction: SOL could easily go all the way back to $79.49 low

Solana (SOL) price is trading with a bearish bias, recording a series of lower highs and lower lows since mid-February. The downtrend has seen the Layer 1 (L1) token drop below the midline of the market range between $79.49 and $126.27.

More Solana News

BNB price eyes $400 as Binance Coin bulls keep showing up

BNB price eyes $400 as Binance Coin bulls keep showing up

Binance Coin (BNB) price has formed lower highs and lower lows over the past few days, but the bulls continue to maintain a strong presence in the market. BNB has also steadfastly shown strength despite the recent uncertainty in the market as altcoins awaited cues from Bitcoin (BTC) price.

More Binance News

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

Read full analysis

BTC

ETH

XRP