- 2019 leaves behind some failed institutional initiatives.
- 2020 promises a State of the Art infrastructure to take crypto trading to the next level.
- Yesterday's "Pump and Dump" can be repeated in the next few hours.
A history of degrowth
Today, the data of institutional adoption of the cryptocurrencies market has been made public. According to this study, 2019 will end with a substantial decline in institutional investment initiatives in this innovative market.
According to Financial Magnates, more than 70 Hedge Funds have closed this year in the face of little interest from the institutional segment.
Nick Carter, the founder of Coin Metrics, has declared: "the market is definitely retail-driven and will remain so for the foreseeable future..."
Investment funds, Family Office and similar projects have lowered the blind to the excess volatility and excess risk inherent in the crypto market.
In a recent statement, Mike Novogratz, CEO of Galaxy Investment Partners LLC, says:
"The next wave will come from the wealth advisers, maybe with endowments and small foundations participating."
A history of growth
News crossing the wires about new trading platforms with the capacity to manage 300K per second are more and more recurrent!
When we talk about 300K transactions per second and access to multiple exchanges without changing platforms, we are talking about high-frequency trading, arbitrage, market makers, not retail investors.
This contradiction makes me think that perhaps the crypto universe has yet to know its model of institutional investors.
Perhaps the future will be in new legislation such as the European one, which will allow traditional banks to offer products related to the crypto industry.
The cryptocurrencies sector is under construction, where we are going to see hundreds of projects with little adoption disappear, triumph a few, and probably new investment models different from the current ones.
ETH/BTC Daily Chart
The ETH/BTC pair is currently trading at the price level of 0.01994 and loses the 0.020 support level for the first time since October.
Above the current price, the first resistance level is at 0.020, then the second at 0.022 and the third one at 0.0225.
Below the current price, the first support level is at 0.019, then the second at 0.018 and the third one at 0.017.
The MACD on the daily chart maintains a very flat profile and lacks direction. The opening between the lines is also minimal and confirms the lack of strength of the asset.
The DMI on the daily chart shows how the bears are once again moving above the ADX line and taking control of the pair after a few weeks of calm.
BTC/USD Daily Chart
The BTC/USD pair is currently trading at the $7.399.5 price level and shows difficulty in breaking through the $7,400 resistance level. Yesterday, a quick move brought the BTC/USD pair to the $7,800 level. After this rise, which took place in a few minutes, the price dropped over the next few hours.
Above the current price, the first resistance level is at $7,400, then the second at $7,600 and the third one at $7,750.
Below the current price, the first support level is at $7,200, then the second at $7,000 and the third one at $6,750.
The MACD on the daily chart shows an incipient bullish cross, so the underlying force goes into the bullish mode. Falls can be used to accumulate.
The DMI on the daily chart shows the bulls very close to disputing the leadership of the bears. Sellers are showing a clear bearish trend.
ETH/USD Daily Chart
The ETH/USD pair is currently trading at the $148.4 price level and stays away from the $150 resistance level. As in the case of Bitcoin, yesterday's rapid rise was just a mirage and sales returned the Ethereum value below critical levels.
Above the current price, the first resistance level is at $150, then the second at $155 and the third one at $160.
Below the current price, the first support level is at $140, then the second at $130 and the third one at $125.
The MACD on the daily chart shows a bullish cross profile but without the confirmation that it does appear on the MACD of the BTC/USD pair.
The DMI on the daily chart shows how the bulls do not intend to dispute the leadership of the bears. Sellers follow a bearish trend but do not feel threatened by the buyer side.
XRP/USD Daily Chart
The XRP/USD pair is currently trading at the $0.2164 price level and is struggling to breach the $0.22 resistance level. Yesterday's rapid rise barely reached the $0.23 level, which gives a clear idea of the lack of strength shown by the XRP.
Above the current price, the first resistance level is at $0.22, then the second at $0.235 and the third one at $0.25.
Below the current price, the first support level is at $0.19 and the third one at $0.17.
The MACD on the daily chart shows a bullish cross profile, but confirmation is still pending. The underlying strength will be optimistic and, even on falls, buyers will appear on a bunch.
The DMI on the daily chart shows the bulls with no intention of disputing the leadership of the bears. In the case of the XRP, the sellers maintain the level of the previous days without problems.
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