Crypto powers higher with key catalysts on watch – The Average Joe

    Crypto powers higher with key catalysts on watch

    Victor Lei — Head of Research

    March 29, 2022


    March 29, 2022

    Crypto bears, this segment is not for you. Ethereum ($ETH), Bitcoin ($BTC) and other cryptos are breaking out — as major cryptocurrencies break key resistance price levels.

    What’s the big deal? Markets are showing signs of moving past peak fear levels seen in the past month — and investors are becoming increasingly bullish:

    • “Ethereum merge” Google searches are at an all-time high for the biggest blockchain upgrade expected to arrive in June.
    • The Crypto Fear & Greed index is pushing from extreme fear levels in January into greed territory — its highest since last November.

    Luna Foundation Guard (LFG) — which oversees the stablecoin UST and its associated token Terra ($LUNA) — is also supporting Bitcoin.

    • LFG plans to hold $3B in Bitcoin reserves — with a longer-term goal of $10B.
    • LFG purchased $125M USDT worth of Bitcoin this week — its current holdings now $1.1B.

    Hitting its $10B target would mean nearly $125M BTC purchased per day 80 days. Per Kyle Davies, co-founder of Three Arrows Capital, “Buying $125mil/day of $BTC for 3 months is a lot”.

    Looking forward: Bullish market momentum could help the rally continue in the near term — per QCP Capital (via Coindesk).

    • April and May are historically strong months for Bitcoin and Ethereum per head of digital assets at Fundstrat Global Advisors (via Insider).
    • A valuation model from Jamie Coutts at Bloomberg sees Ethereum hitting $6.1K in 2022.

    Major cryptos continue to break key resistance lines — and Avatrade chief market analyst expects “serious upward momentum” if Bitcoin breaks $50K (via Proactive).

    Institutional interest in Bitcoin and Ethereum are also growing — with major investment banks announcing new crypto divisions in recent weeks. How Goldman’s home page looks now:

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