Price analysis 12/4: BTC, ETH, XRP, LTC, BCH, LINK, DOT, ADA, BNB, XLM

A few years back, Bitcoin’s (BTC) price was controlled by whales as the crypto market lacked depth and was relatively illiquid. If whales were selling in unison, no one wanted to venture out and buy. Similarly, the whale’s concerted buying easily boosted prices higher.

However, that is not the case anymore. With the arrival of institutional investors, it appears that the whales are gradually losing their ability to influence BT price.

According to on-chain data, Grayscale Investments purchased about twice the number of Bitcoin mined in November. The steady inflow of institutional funds has boosted Grayscale’s Bitcoin Assets Under Management to over $10.5 billion.

Daily cryptocurrency market performance. Source: Coin360

Some investors will wonder why institutions are buying Bitcoin when the price is near record highs but it should be noted that institutional investors usually buy with the long-term in mind. The fact that they are buying near record highs shows they believe Bitcoin’s price will be considerably higher in a few years.

Legendary investor Paul Tudor Jones said that the current crypto market capitalization of about $560 billion is minuscule compared to the $90 trillion equity market cap and “God knows how many trillions of fiat currency.” In the next two decades, Jones anticipates every one to be using “some type of digital currency.”

With such huge future potential, it’s easy to believe that crypto prices will only move higher but this is a common misconception. Every bull phase witnesses violent corrections, and eventually crypto prices will pullback. These are the opportunities that savvy retail and institutional investors will be watching for. 

Let’s analyze the charts of the top-10 cryptocurrencies to determine the critical support levels from where the price may rebound.