- Kraken CEO Jesse Powell believes Bitcoin will hit $1 million.
- Leading brokerage firm Charles Schwab is planning to roll out crypto trading services.
- Ethereum eyes robust support at $1,200 after losing the ground above $1,500.
- Ripple is pivotal at $0.45 in the wake of the rejection suffered under $0.5.
The cryptocurrency market is dealing with a broad-based correction that has been attributed to Bitcoin’s rebuff from the record high of $58,000 in February. Recovery continues to be an uphill battle for most of the cryptoassets, including Ripple and Ethereum. However, selected altcoins like IOTA are posting double-digit gains, ignoring the bearish wave.
Bitcoin fundamentals grow despite lethargic price action
The pioneer cryptocurrency has been rejected from $52,000 twice in one week. At the time of writing, BTC is trading slightly above $47,000 after bouncing off short-term support at the 200 Simple Moving Average (SMA) on the 4-hour chart.
On the upside, Bitcoin is facing overhead pressure at the 100 SMA. The bearish outlook appears to have been validated by the Moving Average Convergence Divergence (MACD). If the support at $47,000 fails to hold, BTC may explore downhill levels toward $42,000.
BTC/USD 4-hour chart
Kraken CEO believes Bitcoin will hit $1 million
The CEO of Kraken exchange has always spoken his mind about Bitcoin’s expected wild growth. In his latest interview with Bloomberg, Jesse Powell reckoned that the largest cryptocurrency could rise to $1 million.
We can only speculate, but when you measure it in terms of dollars, you have to think it’s going to infinity. The true believers will tell you that it’s going all the way to the moon, to Mars, and eventually, will be the world’s currency.
Meanwhile, brokerage giant Charles Schwab is considering introducing cryptocurrency trading. The new service will ride on the tech of a crypto-native partner. Reports indicate that the brokerage firm is making plans to roll out the service by the end of the year.
Grayscale’s GBTC trading at a negative premium
Grayscale Investments is the biggest digital money manager in the world. During the bull run from late 2020, Grayscale Bitcoin Trust that trades under the ticker GBTC consistently bought the flagship cryptocurrency, proving to the world that Bitcoin had matured as an asset.
While the fund manager has slowed down its uptake of Bitcoin, GBTC is trading at a -11.92% discount as per the data by Glassnode. A negative discount could be seen as a bearish signal, but some analysts say it is not entirely bad for Bitcoin.
Ethereum continues to run out of options as $1,200 beckons
Ethereum struggles with the search for robust support, especially with overhead pressure intensifying under $1,500. Losing the anchor at the 50 SMA was a big misstep for the bulls.
The least resistance path is downwards, as emphasized by the Relative Strength Index (RSI) drop below the midline. Short-term buyer congestion between $1,400 and $1,440 must stay in place to avoid losses that could see Ether tumble to $1,200.
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ETH/USD 4-hour chart
On the upside, if the uptrend resumes and steps above $1,500 and by association, the 50 SMA, ETH could attain stability, allowing bulls to focus on higher levels $1,700.
Ripple takes another trip downstream
XRP almost hit $0.5 on Thursday, but the momentum fizzled out. The correction that took over seems unstoppable at $0.45. If bulls fail to reclaim the ground above $0.45, the bearish leg will extend to the 50 SMA at $0.44.
Based on the MACD, recovery is unlikely in the near-term. It is important to note the MACD line cross under the signal line on the 4-hour chart. Thus further losses to $0.4 are not a farfetched idea.
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XRP/USD 4-hour chart
Closing the day above $0.45 will ensure Ripple’s market stability, which will allow bulls an opportunity to fight for another breakout past $0.5. The confluence resistance by the 100 SMA and 200 SMA would delay the recovery.