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The next leg of the bull run will be sparked by the gush of institutional money waiting to enter the crypto markets. Existing operators realize this and are exploring options to improve their products to suit the institutional players. Coinbase is rumored to be eyeing a federal banking
license, which will help it attract larger customers.
Realizing the vast potential, venture capital firms are laying the groundwork to increase their investments in cryptocurrencies. The firm behind Snapchat,
Lightspeed is the latest to join the others like Comcast Ventures and the Rockefeller family’s venture capital arm Venrock who are looking to build their crypto exposure.
We have been pointing to the various news related to institutional investors because this shows the kind of interest they have even after the decline in prices. The retail investors should take this in consideration and might think about investing for the long-term purposes on any decline due to negative news.
But also think about keeping the money to trade on the peaks and the valleys because the digital currencies are volatile and may offer many opportunities.
Let’s see if we find any buy setups today.
BTC/USD
We shall look at the chart of the oldest cryptocurrency from a slightly long-term perspective today. After last year’s massive rally,
Bitcoin is currently consolidating the gains inside a large range of $6,075.04-$12,172.43.
Since March of this year, the moving averages have been crisscrossing each other, which also confirms that there is no trend currently in play.
Inside the large range, another smaller range is developing, which has resistance at $10,000 and support at $7,941.68. This offers the traders an opportunity to lock in about $2,000 in profits if the range-bound trading persists.
Therefore, traders can buy the
BTC/USD pair on any decline close to the support of $7,941.68 with a suitable stop loss. The target objective of this trade is a move back to $10,000.
This trade suggestion will be invalidated if prices sink below $7941.68 and fail to recover quickly. In such a condition, the positions should be closed because the next support on the downside is at $7,000.
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