Crypto market prepares to storm the trend line
|
Market picture
The crypto market is losing slightly early Tuesday afternoon, cutting the gains of the past seven days to 4.4%. Acting on classic market trends, selling pressure intensified on the approach to the 200-day moving average near $2.90 trillion. A dip under that curve intensified selling in early March, but the market has generally held near that line and is now storming it.
Success could whet the appetite of doubters, validating the continuation of the cryptocurrency bull market.
Bitcoin started the week with a solid move above its 200-day average, peaking just below $89K on Monday. However, it failed to overcome the next milestone—the 50-day average.
At this stage, the recovery may be helped by the positive dynamics of the stock market, shifting the balance in favour of buyers. Successfully overcoming the $90K level will open a fast track to $97K, where there was a previous long consolidation. If FOMO joins this uptrend, we could see a move to all-time highs before the summer even begins.
News background
According to CoinShares, global crypto fund investments rose $644 million last week after five weeks of outflows totalling $6.4 billion. Bitcoin investments increased by $724 million, XRP by $6.7 million and Solana by $6.4 million. Ethereum investments decreased by $86 million.
Strategy bought 6,911 BTC worth $584.1 million at an average price of $84,529 per coin. The company owns 506,137 BTC, bought at an average price of $66,608. The total investment is valued at $33.7 billion.
Japan-based Metaplanet bought 150 BTC for $12.6 million following the appointment of Eric Trump, the son of the US president, to its strategic board. The company's total crypto assets reached 3,350 BTC ($291.3 million). Metaplanet plans to accumulate 10,000 BTC by the end of 2025.
Crypto sceptic and gold investment advocate Peter Schiff announced the creation of his own Bitcoin reserve in honour of his 62nd birthday and encouraged people to give him BTC as a gift.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.