BlackRock Announces Bitcoin Trust to Give Clients Exposure to Spot Bitcoin; plus our weekly BTC and ETH analysis
- BlackRock Announces Bitcoin Trust to Give Clients Exposure to Spot Bitcoin
- Bitcoin/USD – Price Still Respecting Channel
- Ethereum/USD – Break of Resistance
BlackRock Announces Bitcoin Trust to Give Clients Exposure to Spot Bitcoin
Last Thursday, BlackRock, the largest asset manager in the world, announced via blog post that it launched a private trust offering for institutional clients in the US to gain direct exposure to Bitcoin. The company stated, “Despite the steep downturn in the digital asset market, we are still seeing substantial interest from some institutional clients in how to efficiently and cost-effectively access these assets using our technology and product capabilities”. BlackRock has also partnered with crypto exchange Coinbase to provide its clients with direct access to crypto, starting with Bitcoin. The users of BlackRock’s institutional investment management platform, Aladdin, will receive crypto trading, custody, prime brokerage, and reporting capabilities upon signing up for Coinbase Prime. BlackRock added, “we see potential to benefit our clients and capital markets more broadly, including: permissioned blockchains, stablecoins, cryptoassets, and tokenization.”
Bitcoin/USD – Price Still Respecting Channel
BTC Daily Chart
BTC Weekly Chart
At the time of writing, one bitcoin is worth approximately $24k and is still trading within the upwards parallel channel (highlighted in orange). As stated in last week’s article, Until these boundaries are broken, I believe the best way to trade this price action is to respect the channel and expect for the channel’s support/resistance areas to do their job. When zooming out to the weekly time frame, we can also note that price is still over the weekly 200MA which is a sign of strength from the bulls. Staying above this weekly level is key.
Bitcoin Bull Scenario
Bitcoin maintains the parallel channel/200MA weekly level and I believe upwards continuation is the more probable outcome.
Bitcoin Bear Scenario
Bitcoin loses the 200MA weekly level and/or the parallel channel levels and I believe price retests the June lows.
Ethereum/USD – Break of Resistance
ETH Daily Chart
ETH Weekly Chart
At the time of writing, Ethereum is priced at $1889, and has given a weekly close over the weekly $1.8k resistance level. Last week I mentioned that if ethereum closed over this level on a weekly closing basis, I believed a move to the upside would follow. ETH now seems to be retesting the same $1.8k weekly level that it broke through as support. If this level can be maintained I believe the next major resistance is near $2.3k for ethereum.
Ethereum Bull Scenario
As long as ethereum maintains the $1.8k level on a weekly closing basis, I believe bulls are still in control.
Ethereum Bear Scenario
If Ethereum loses the $1.8k level a move back to its previous ATH or weekly 200MA is the most likely outcome.