- Retail and institutional investors willing to pay exorbitant premiums for exposure to cryptocurrencies.
- Interest in the crypto segment is growing at a time when there are few alternatives to the stock markets.
- The extremely low volatility level increases the probability of an outburst.
The crypto market takes one more day to decide the direction to follow, and it also consumes the patience of the investors.
The solution to the current scenarios is imminent since there is no obstacle-free space in the upside, and can break the limits of patience underneath.
As we wait to see what happens, I want to comment on a much more down-to-earth aspect of the market – the social perception about cryptocurrencies.
I have been covering the crypto market for three years now, and the public is more interested than ever in knowing how to get started.
During these years, people in my social environment have rejected the idea of putting a single penny in cryptocurrencies – “that's crazy”, they said – but now they are interested, they ask about cryptos, want to learn about it and many of them, are finally buying their first Ethereums, Stellars or Bitcoins.
The change in the positioning of the average investor also becomes evident when we look at the figures of one of the few instruments available for investing in cryptocurrencies within the traditional circuits, the Grayscale Bitcoin Trust.
From retail investors to investment funds, they can buy exposure to Bitcoin or Ethereum and are willing to pay a premium for it.
Jason Williams, a general partner at Morgan Creek Digital, recently tweeted:
To own 1 #bitcoin in the Grayscale Bitcoin Trust it will cost you about $11,240 or about 1000 shares of GBTC.
— Jason Williams (@JWilliamsFstmed) June 7, 2020
That’s the premium #Bitcoin is is priced at $9520 this morning fwiw.
Not only that, in the case of investors who want to participate in the Grayscale Ethereum Trust, they assume a cost of over $2340 for having 1 Ether! It's insane!!
There is an urgent need for more regulation to provide the layer of confidence in the crypto Exchanges and allow investors to buy at market prices without such exaggerated overheads.
The dominance charts repeat yesterday's positions and postpone one more day the decision of which direction to take. Ethereum represents 9.96% of the overall market today, while Bitcoin tries not to move too far from 66%, with a market share today of 65.97%.
ETH/BTC Daily Chart
The ETH/BTC pair is currently trading at the price level of 0.0249 after failing to break the downward trend line that separates it from the fully bullish scenario.
Above the current price, the first resistance level is at 0.0254, then the second at 0.0259 and the third one at 0.0276.
Below the current price, the first support level is at 0.0248, then the second at 0.0235 and the third one at 0.0225.
The MACD on the daily chart is about to cross over to the downside, although a rebound is possible due to the DMI setting, which still keeps the bullish pattern active.
The DMI on the daily chart shows the bulls surfing the ADX line and maintaining the previous bullish pattern. The bears are following the previous downward trend.
BTC/USD Daily Chart
The BTC/USD pair is currently trading at $9749, and the tension is still there waiting for a decision on the direction to be taken.
Above the current price, the first resistance level is at $10450, then the second at $11375 and the third one at $12850.
Below the current price, the first support level is at $9500, then the second at $9215 and the third one at $8750.
The MACD on the daily chart extends the flat, slightly bearish profile for another day. The current setup does not provide visibility of any future time frame.
The DMI on the daily chart shows the bulls glued to the ADX line, but unable to break it. The bears are moving down and giving hope for a new bullish moment.
ETH/USD Daily Chart
The ETH/USD pair is currently trading at the price level of $243.7 and continues to consolidate below the critical level of $250. A consolidation below a significant resistance level is always bad news.
Above the current price, the first resistance level is at $250, then the second at $267 and the third one at $288.5.
Below the current price, the first support level is at $235, then the second at $222 and the third one at $200.
The MACD on the daily chart is about to cross over to the downside, which will occur at the close of today's trading unless there is a massive upward movement today.
The DMI on the daily chart shows the bulls below the ADX line, which disables the bullish pattern and puts the bearish side scenario on the table. The bears continue to increase their trend force and could reach the bullish level by the end of this week.
XRP/USD Daily Chart
The XRP/USD pair is currently trading at $0.2014 after barely moving a few cents today. The Ripple price is being compressed by the presence of the 200-day simple moving average at $0.21, above, and the rising trend line from the March lows at $0.185, below.
Above the current price, the first resistance level is at $0.21, then the second at $0.235 and the third one at $0.262.
Below the current price, the first support level is at $0.20, then the second at $0.19 and the third one at $0.18.
The MACD on the daily chart shows a flat profile with no direction and strength. The MACD on the daily chart shows a flat profile with no direction and strength. Volatility is zero, which could lead to a radical movement as soon as the money chooses where to go.
The DMI on the daily chart shows bulls dominating the XRP/USD pair but not moving in the price direction.
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