The number of hedge funds which exclusively trade digital currencies has grown to 120, with about $2.3 bln in total assets under management, according to the financial research firm Autonomous Next.
While it sounds like a large number, it pales in comparison to the $3.15 tln managed by the hedge fund industry in the third quarter.
Cryptocurrencies have attracted only a small number of institutional investors because most still remain skeptical. The latest criticism comes from legendary investor Warren Buffet, who has said that Bitcoin is in bubble territory.
Well, a correction after such a stupendous rally is certainly possible. Therefore, we always recommend a stop loss to our readers. Even if the digital currencies correct sharply, our losses will be limited and our capital will be preserved. We can again reinvest at lower levels.
BTC/USDWe had recommended long positions in Bitcoin in our previous analysis, with our target objective being $6000. On Oct. 27, the digital currency hit a high of $5986, where hopefully traders would have booked partial profits as suggested. Where is Bitcoin headed next?
Bitcoin is currently correcting towards the trendline support at $5600. Just below this support is the 20-day exponential moving average (EMA) at $5513. We expect buying to emerge at these levels, however, we are not certain that this level will hold this time.
Our stops at $5650 have been hit. We would like to sit back and wait, because if the support zone of $5513 to $5600 breaks, the digital currency will slide to $4975 levels.
On the other hand, if the support zone holds then Bitcoin is likely to remain range-bound between $5600 to $6000. However, the next buy on the virtual currency will only be triggered if it breaks out to new highs and crosses the resistance line of the ascending channel.
Presently, we don’t find any buy setups, therefore, we don’t not recommend any fresh trade on Bitcoin.
ETH/USDWe don’t have any existing positions or recommendations on Ethereum. The bulls and the bears are taking a break after the hugely volatile day on Oct. 22.
Ethereum has a slew of resistances from $300 to $315 levels. Therefore we recommend a long position only on a breakout, and close above $315 with a close stop loss. The first target is $353.
On the downside, it has support from the trendline at $280, below which it is likely to fall to $272 and thereafter to $252 levels.
At current levels we don’t find any buy setups on Ethereum, hence we do not suggest to trade on it.
https://www.cointelegraph.com/news/price-analysis-october-28-bitcoin-ethereum-bitcoin-cash-ripple-litecoin
