empty
23.11.2021 05:13 PM
Bitcoin and Ethereum: Correction is not a hindrance for investors

This image is no longer relevant

Investors are not worried about the corrective move in Bitcoin, which is about 19% from the peak. Based on the weekly report on the actions of institutional investors, there is a cash inflow between November 15-19 in the amount of $154 million. The lion's share of the total volume was absorbed by Bitcoin - $114 million. Ethereum received an inflow of funds in the amount of $14 million, while ETH absorbed approximately $80 million from the piggy bank of institutional investors in 4 weeks.

As for new blockchains, investors prefer Solana, which saw an inflow of investments amounting to $43 million over the past month.

Based on the data obtained above, one can see a positive attitude among professional market participants, given that it lasts more than 1 year.

Let me remind you that the head of MicroStrategy predicted a similar trend towards digital assets back in the fall of 2020, saying that other private firms would follow the example in the next six months.

Now, news that companies, funds, institutional investors have acquired X-volume of digital assets comes on a weekly basis.

Example

The mobile software and blockchain company Phunware (PHUN), which is listed on the Nasdaq exchange, has increased its Bitcoin investment by 398 BTC (approximately $23.8 million at an average price of $59,917). News from November 22.

A similar trend for digital assets will remain on the market for a long time, so it is still very early to store Bitcoin.

What is happening on Bitcoin and Ethereum trading charts?

Between November 10 and November 23, the Bitcoin exchange rate dropped by more than $13,000, it may seem that we are dealing with a collapse, but this is not so. Analyze the trading chart from the end of July to the current day, you will see an upward trend, where the existing decline is considered a clock component of the trend.

Thus, the chance of further growth is high, market participants are focused on this, who view the correction as an opportunity to build up a portfolio with digital assets.

Expectations and prospects

The corrective move will soon be completed, the maximum deviation of the rate at the current moment is possible up to the psychological level of $50,000. The recovery of the BTC value is likely to be inertial, as it happened earlier in history. The local maximum in the face of the value of $69,000, most likely, will not become an obstacle for buyers, therefore, it will be broken when prices converge. The strongest level may well be the value of $70,000.

The medium-term perspective, as before, considers the strengthening of Bitcoin towards the level of $100,000.

As for Ethereum, the correction over the same period was about 18.5%. The area of the psychological level of $4,000 serves as a pivot point, relative to which there was a reduction in the volume of short positions.

In this situation, a stepwise upward move is considered; the strongest signal to buy ETH will come from the market when the price is holding above $4,500.

The price development prospect is still considering a $5000 = 1 ETH forecast.

This image is no longer relevant

The index of emotions (aka fear and greed) of the crypto market is at the level of 33 points, which is justified due to the corrective move. Based on the dynamics of the index, there is a convergence with the area of a possible change in trade interests. Thus, expectations of an increase in the value of digital assets may soon be confirmed in the market.

This image is no longer relevant

Gven Podolsky,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Bitcoin spikes from $96 600 to $104 500 in 24 hours

Bitcoin has surged to $104,500, after trading at $96,600 just yesterday morning. This confident move above the $100,000 mark clearly signals a return of strong bullish momentum in the cryptocurrency

Jakub Novak 14:49 2025-05-09 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 9

Bitcoin has climbed above $100,000, while Ethereum is trying to consolidate above $2,000. After yesterday's sharp rally, which continued during today's Asian session, Bitcoin is now trading at $103,000, having

Miroslaw Bawulski 09:46 2025-05-09 UTC+2

Technical Analysis of Intraday Price Movement Ethereum Cryptocurrency, Friday May 09, 2025.

If we look at the 4-hour chart of the Ethereum cryptocurrency, it appears that the price movement is moving above the WMA (30 Shift 2) which also has a slope

Arief Makmur 06:27 2025-05-09 UTC+2

Technical Analysis of Intraday Price Movement Bitcoin Cryptocurrency, Friday May 09, 2025.

On the 4-hour chart of the Bitcoin cryptocurrency, the Stochastic Oscillator indicator can be seen to be in Overbought conditions and is now preparing to Cross SELL and break below

Arief Makmur 06:27 2025-05-09 UTC+2

Bitcoin: Who's Driving the Price Up — Powell, the U.S. Treasury, or Short Squeezes?

While stock indices remain stagnant, gold consolidates near its highs, and Bitcoin is once again capturing attention. The crypto market's flagship has approached the psychologically important $100,000 level

Ekaterina Kiseleva 00:28 2025-05-09 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 8

Bitcoin reached just below $100,000, while Ethereum hit $1,900. Such a major growth in the cryptocurrency market once again confirms its bullish outlook, which has been discussed quite

Miroslaw Bawulski 09:22 2025-05-08 UTC+2

Bitcoin on the Brink: Breakout or Reversal?

Bitcoin's price is hovering near a psychologically significant threshold, with market participants bracing for another upward surge or a sudden reversal that could erase short-term bullish expectations. More chart

Ekaterina Kiseleva 01:16 2025-05-08 UTC+2

Crypto market opens with buoyant growth

US stock index futures surged sharply at the opening of today's trading session on news that representatives from the US and China have resumed consultations on trade matters. Media reports

Jurij Tolin 14:14 2025-05-07 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 7

Bitcoin and Ethereum Show Further Growth Amid Positive Crypto Legislation News Bitcoin is currently trading at $96,700, having rebounded from a low of $93,400, while Ethereum has recovered

Miroslaw Bawulski 10:32 2025-05-07 UTC+2

Bitcoin Gathers Strength: The Market Prepares for the Next Wave

Bitcoin is trading in the $93,000–$94,000 range, about 0.5% below its recent local high of $97,900, recorded on May 2. Volatility has decreased, and the market seems

Ekaterina Kiseleva 01:23 2025-05-07 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.