Following in Morgan Stanley’s footsteps, Goldman Sachs has announced plans to allow its wealth management clients to trade cryptocurrencies and other digital assets. In an interview with CNBC, Mary Rich, global head of digital assets for Goldman Sachs’ private wealth management division, said the rollout could happen sometime in the second quarter of 2021.
The adoption of Bitcoin by two of the world’s largest investment banks is likely to force other banks to walk down the crypto path sooner rather than later. The influx of fresh money from the clients of these legacy institutions can further increase demand and drive up prices.
In response to a question about the future value of Bitcoin (BTC), Kraken CEO Jesse Powell told Bloomberg that a Bitcoin, currently buying a Tesla Model 3, will buy a Lamborghini by the end of the year and a Bugatti by 2023.
Daily performance of the cryptocurrency market. Source: Coin360
Another bullish voice was that of Galaxy Digital CEO Mike Novogratz, who said in an interview with CNBC that Bitcoin “is on an inevitable path to having the same market capitalization and then a higher market capitalization than gold.”
However, not everyone is bullish on Bitcoin. Boris Schlossberg, managing director of FX strategy at BK Asset Management, told CNBC that Bitcoin was “very, very close to maybe a medium-term high here.”
Let’s analyze the charts of the top 10 cryptocurrencies to determine the trend and path of least resistance.
BTC / USDT
Bitcoin has held above the descending channel since it exited it on March 29, which is a positive sign. However, the bears have yet to give up as they are aggressively defending the $ 60,000 level.
BTC / USDT daily chart. Source: TradingView
The price was down from $ 59,789 today, but an encouraging sign is that the bulls bought the dip and did not allow the BTC / USDT pair to re-enter the channel. The bulls will now make one more attempt to rise above the all-time high at $ 61,825.84.
If successful, the pair could resume the uptrend and begin its march north towards the first target at $ 69,279 and then $ 79,566. The ascending moving averages suggest that the bulls have the upper hand.
However, the Relative Strength Index (RSI) has shown a negative divergence for the past few days. If the indicator falls sharply from the downtrend line, it will suggest that the new uptrend may have to wait a few days.
The bullish view will be invalidated if the price turns down and breaks below the moving averages. Conversely, if the RSI rises above the downtrend line, it will indicate that momentum has picked up, improving the prospects for a rally.
ETH / USDT
Ether (ETH) has been hitting the resistance line of the symmetrical triangle. A tight consolidation near a resistance increases the chance of a breakout above it. The 20-day exponential moving average ($ 1,743) has appeared and the RSI is in the positive zone, indicating an advantage for the bulls.
ETH / USDT daily chart. Source: TradingView
If buyers can push the price above the triangle, the ETH / USDT pair could retest the all-time high. If the bulls clear this hurdle, the pair could begin its rally towards the pattern’s target at $ 2,618.14.
However, bears are unlikely to give up easily. They will mount a strong resistance at $ 2,040.77. If the price turns down from this general resistance but does not re-enter the triangle, then it will suggest that the bulls are buying on dips. If that happens, the pair may have a good chance of breaking above $ 2,040.77.
On the other hand, if the bulls fail to hold the price above the triangle, it will suggest that traders are squaring their positions at higher levels. That could keep the pair in range for a few more days. The first sign of weakness will be when the price falls below the trend line.
BNB / USDT
The bulls are trying to push Binance Coin (BNB) above $ 315. Although the price turned down from today’s general resistance, the long tail of the candle suggests that the bulls are buying on every minor drop.
BNB / USDT daily chart. Source: TradingView
Both the moving averages are rising and the RSI is in positive territory, suggesting that the path of least resistance is to the upside. If the bulls can carry the price above $ 315, the BNB / USDT pair could rally to $ 348.69.
A breakout and close above the all-time high could start the next stage of the uptrend which could hit $ 430. This bullish view will be invalidated if the price turns down from the current level and plummets below the 20 EMA. days ($ 265).
ADA / USDT
Cardano (ADA) has held above the 20-day EMA ($ 1.16) for the past few days, but the bulls have been unable to push the price above $ 1.30. This suggests a lack of demand at higher levels.
ADA / USDT daily chart. Source: TradingView
The 20-day EMA has stabilized and the RSI is just above the midpoint, suggesting a balance between supply and demand. The bears will now try to sink the price below the moving averages.
If they do, the ADA / USDT pair could fall to the support at $ 1.03. A break below this support will suggest the start of a deeper correction at $ 0.80.
Conversely, if the price bounces off the 20-day EMA and the bulls push the price above $ 1.30, the pair could rally to $ 1.48.
DOT / USDT
After a small hesitation near the 20-day EMA ($ 34.35), Polkadot (DOT) has broken above today’s moving averages. This shows strong demand at higher levels. The bulls will now try to push the price above the downtrend line.
DOT / USDT daily chart. Source: TradingView
If they are successful, the DOT / USDT pair could retest the all-time high at $ 42.28. If momentum can conquer this resistance, the pair could begin the next stage of the uptrend which can hit $ 53.50.
However, if the price turns down from the downtrend line, it will suggest that the bears are active at higher levels. That could keep the pair in range for a few more days. The flat moving averages and the RSI above 58 suggest a small advantage for the bulls.
XRP / USDT
XRP once again declined from near the $ 0.60 overhead resistance. However, the positive signal is that the bulls have bought the dip to the 20-day EMA ($ 0.51) as seen from the long tail of today’s candle.
XRP / USDT daily chart. Source: TradingView
The ascending moving averages and the RSI in positive territory suggest that the path of least resistance is to the upside. The bulls are likely to make one more attempt to push the price above $ 0.60 now.
If they are successful, a raise to $ 0.65 is possible. This level can act as a stiff resistance, but if the bulls can push the price above it, the XRP / USDT pair could gain momentum. This bullish view will be invalidated if the price falls below the moving averages.
UNI / USDT
The Uniswap (UNI) bounce from the 50-day simple moving average ($ 27.26) on March 26 has failed to overcome the hurdle of the 20-day EMA ($ 29.12). This shows that sentiment has shifted from buying on dips to selling on rallies.
UNI / USDT daily chart. Source: TradingView
If the bears now sink the price below the $ 25.50 support, the UNI / USDT pair could enter a corrective phase that could lower the price to $ 20 and then $ 18.
The marginally falling 20-day EMA and the RSI just below the midpoint suggest a minor advantage for the bears.
This negative view will be invalidated if the price rises from the current level and rises above the 20-day EMA. Such a move could extend the pair’s stay within the range for a few more days.
THETA / USDT
THETA turned down from $ 13.95 on March 29, indicating that bears are aggressively defending the $ 14 to $ 14.96 resistance zone. The bears will now attempt to sink the altcoin to the 20-day EMA ($ 10.27).
THETA / USDT daily chart. Source: TradingView
In an uptrend, the bulls generally buy the dips of the 20-day EMA as it offers an attractive risk / reward ratio. Therefore, if the THETA / USDT pair bounces strongly off this support, it will suggest that sentiment remains bullish and traders are buying on dips.
That could keep the pair in the $ 10.35- $ 14 range for a few more days. Conversely, if the bears sink the price below the 20-day EMA, it will suggest a possible change in sentiment. Then the pair could drop to the 50% Fib retracement level at $ 8.88.
LTC / USDT
The Litecoin (LTC) relief rally appears to have hit a wall at the 50-day SMA ($ 196), as the bulls have failed to hold the price above it. The bears will now try to sink the price to the trend line of the triangle.
LTC / USDT daily chart. Source: TradingView
If the price bounces off the trend line, it will indicate that the bulls continue to buy on the dips. That could keep the LTC / USDT pair trading inside the triangle for a few more days.
The flat moving averages and the RSI near the midpoint suggest a balance between supply and demand.
This neutral view will be invalidated after the price breaks above or below the triangle. That could indicate the possible start of a trend move.
LINK / USDT
Chainlink (LINK) broke above the 20-day EMA ($ 27.79) on March 29 and 30, but was unable to climb the 50-day SMA ($ 29). Although the price was down today, the bulls bought the dip as seen from the long tail of the candle.
LINK / USDT daily chart. Source: TradingView
The bulls can now make one more attempt to push the price above the 50-day SMA. If they manage to do that, the LINK / USDT pair could rally to $ 32. A break above this resistance will suggest an advantage for the bulls.
Conversely, if the price turns back down from the 50-day SMA, it is likely to drop to $ 24. This is important support to watch out for because if it breaks down, the pair will complete a descending triangle pattern, which could indicate a possible trend reversal. Such a move could open the doors for a drop to $ 14.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement involves risk. You should do your own research when making a decision.
Market data is provided by the HitBTC exchange.