crypto market analysis

Hi Crypto Network,

The coronavirus pandemic will force central banks to shift to digital payments as the World Health Organization has warned that the virus can spread through banknotes. Even the credit card terminals and PIN pads can be a source of transmission.

Deutsche Bank macro strategist Marion Laboure said: “A once-in-a-century pathogen demands once-in-a-century solutions. An obvious place to start is to accelerate the inevitable shift toward [digital cash].”

Several nations have locked down large cities, and in some cases, the whole nation, to control the spread of the virus. This has brought the economy to a standstill. In the US alone, in two weeks, about 10 million people have filed for unemployment insurance. In order to support the economy, many central banks have announced huge stimulus measures.

The author of international bestseller ‘Rich Dad, Poor Dad’, Robert Kiyosaki, has said that all the money printing will reduce the value of US dollars. Hence, he advises people to “save gold — god’s money or Bitcoin — people’s money.” It is not only Kiyosaki who is bullish on gold and Bitcoin. Even Max Keiser of Keiser Report has predicted that the billionaires will stockpile gold but after all the gold has been bought, they would look for the only alternative to gold, that is Bitcoin.

Though the fundamentals are positive for a rally in cryptocurrencies, it is unlikely to be a straight move up. The institutional money is likely to trickle in rather than rush in a hurry. Therefore, the volatility is likely to remain high for the next few months, which might offer good trading opportunities. Let’s analyse the charts of the top five cryptocurrencies by market capitalization to identify the critical levels to watch out for.

BTC/USD

From February 25 to March 31, the 20-day EMA had been acting as a resistance. However, the bulls flipped it to support as they held Bitcoin above the 20-day EMA since April 2. This is a positive sign.

Currently, the bulls are facing resistance at the 50-day SMA, which is sloping down. However, after a minor consolidation or correction, we expect this level to be scaled. The next level to watch on the upside is $7,976.67, which is the 61.8% Fibonacci retracement of the entire fall from $10,522.51 to $3,858.

We anticipate the bears to mount a stiff resistance closer to $7,976.67 but if the bulls can scale the price above it, a rally to $9,096.30 is possible. The 20-day EMA has started to turn up slowly and the RSI has jumped into the positive territory, which suggests that the buyers are back in the game.

Our bullish view will be invalidated if the price turns down from the current levels and breaks below the trendline of the wedge. Such a move will be a huge negative and can drag the price to $5,600.

 

ETH/USD

Ether broke out of an ascending triangle pattern on April 6, which is a huge positive. This bullish setup has a target objective of $210. Currently, the bulls are facing selling close to the 50-day SMA. Above this level, the downtrend line might again act as a resistance.

We anticipate a few days of consolidation close to the downtrend line. However, if the bulls can scale the price above the downtrend line, it will indicate an end of the downtrend. Above the downtrend line, a move to $250 and above it to $290 is also possible in the medium-term.

The 20-day EMA has started to turn up gradually and the RSI has jumped into the positive zone, which suggests that the bulls have the upper hand.

Our bullish view will be invalidated if the price turns down from the current levels and plummets below the breakout level of $150. Such a move will indicate that the current breakout was a bull trap. However, we give this a low probability of occurring.

 

XRP/USD

XRP has been trading inside a rising wedge pattern for the past few days. Currently, the bulls are attempting to push the price above the resistance line of the wedge. If successful, it will be a positive sign.

Above the wedge, the bulls might face a minor resistance at $0.21629. If this level is crossed, the altcoin is likely to pick up momentum and move up to $0.25 and above it to $0.30.

The 20-day EMA has flattened out and the RSI has risen into the positive zone, which suggests that the selling pressure has reduced.

Our bullish view will be negated if the bears defend the resistance line of the wedge aggressively and sink the price below the wedge. If that happens, a fall to $0.145 is possible.

 

BCH/USD

Bitcoin Cash has broken out of the downtrend line and the 20-day EMA. This suggests that the downtrend is over. The bulls are attempting to start a new uptrend; however, they are likely to face stiff resistance at the 50-day SMA at $269 and above it at $300.

If the price turns down from the overhead resistance levels, a few days of range-bound action is likely. The critical support to watch on the downside is $200. A break below this support will be the first sign of weakness.

Below $200, the next support to watch out for is $160. However, we give it a low probability of falling to these levels.

On the upside, after the bulls push the price above $300, a move to $400 and above it to $500 is possible in the medium-term.

 

BSV/USD

Bitcoin SV has been trading above the 20-day EMA for the past five days. The 20-day EMA has flattened out and the RSI is just above the midpoint, which suggests that the bears are losing their grip.

However, the bears are unlikely to give up without putting up a fight. They will defend the 50-day SMA aggressively. If the price turns down from the current levels and breaks below the 20-day EMA, it will indicate that the current breakout of $185.87 was a bull trap. Below the 20-day EMA, the altcoin can sink to the strong support at $146.96.

Conversely, if the bulls do not give up much ground from the current levels, it increases the possibility of a break above the 50-day SMA. Above this level, a move to $268.842 and above it to $319.94 is likely.

 

Hopefully, you have enjoyed today’s article. Thanks for reading!

Have a fantastic day!

Live from the Platinum Crypto Trading Floor.

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