crypto market analysis

Hi Crypto Network,

The coronavirus pandemic and the central banks’ actions globally are the two key points that have been influencing investor sentiment. JPMorgan Chairman and CEO Jamie Dimon praised the US government and the Fed for their timely intervention to support the economy.

However, he also warned that the current crisis “will include a bad recession combined with some kind of financial stress similar to the global financial crisis of 2008”.

Several analysts have said that the current crisis could be the tipping point for Bitcoin. Venture capital investor Tim Draper said that all the money printing done by the central banks will make it “worth less, and less, and less.” This could drive investors towards Bitcoin. Cameron Winklevoss, co-founder and president of cryptocurrency exchange Gemini, believes that the current “pandemic will be an inflection point for Bitcoin and the Metaverse.” Hence, Winklevoss has asked his followers to “hodl” their Bitcoins.

Along with the recent easing measures that are likely to be positive for Bitcoin, the upcoming halving of the miner rewards is also a major event that is being watched by investors. CEO of Ballet crypto wallet company Bobby Lee expects Bitcoin to rally to $10,000 by May and hit a new lifetime high by December of this year.

However, not everyone is bullish on the short-term prospects of Bitcoin. BitMEX CEO Arthur Hayes believes that the equity markets will turn down and drag Bitcoin lower along with it. Hayes expects Bitcoin to drop to $3,000 in the short-term. After hearing both the bullish and bearish arguments, let’s analyse the charts of the major cryptocurrencies to determine the path of least resistance.

BTC/USD

Contrary to our assumption, the bulls could not scale above the 50-day SMA, which shows that the bears are aggressively defending this level. Repeated failure to break above the 50-day SMA lead to profit booking by the short-term bulls and shorting by the aggressive bears.

Bitcoin broke below the trendline of the rising wedge pattern on April 10. However, the bears could not take advantage of this weakness and resume the downtrend. This shows a lack of sellers at lower levels.

The 20-day EMA has flattened out and the RSI is also close to the 50 levels. This points to a balance between the bulls and bears.

The bulls are currently defending the $6,526 support, which shows buying at lower levels. If the bulls can push the price above the 50-day SMA and the recent swing high of $7,466, the advantage will tilt in their favour and a move to $8,000 and above it to $9,000 is possible.

Conversely, if the bears sink the pair below the immediate support at $6,526, a drop to $5,600 is likely.

 

ETH/USD

Though the breakout on April 6 was strong, the bulls could not sustain the momentum and push the price above the 50-day SMA. This shows that the bears are aggressively defending the 50-day SMA.

The 20-day EMA has flattened out and the RSI is just above the midpoint. This suggests a consolidation for a few days. The biggest altcoin could stay range-bound between $150 and $176.82.

If the bears can sink the price below the breakout level of $150, Ether is likely to drop to $120 and below it to $100 levels.

However, if the bulls defend the support at $150, they are likely to make another attempt to scale the price above the 50-day SMA and the recent swing high of $176.82. If successful, the ETH to USD pair can move up to $200 and above it to $250.

 

XRP/USD

XRP rallied and closed (UTC time) above the 50-day SMA on April 8 but the bulls could not build upon the momentum. This shows that the bears are unlikely to give up without a fight. However, the positive thing is that the bulls have not allowed the price to dip below the 20-day EMA.

Both the moving averages have flattened out and are close to one another. The RSI has been trading just above the 50 levels for the past few days, which suggests an equilibrium between the buyers and sellers.

A break below the immediate support at $0.175 is likely to attract further selling. Below this level, a drop to $0.145 is possible. If this level also cracks, the XRP to USD pair can retest the recent lows. However, we give this a low probability of occurring.

On the upside, if the bulls can push the price above the $0.20524-$0.21629 resistance zone, a rally to $0.25 and above it to $0.28578 is likely.

 

BCH/USD

The bulls managed to push Bitcoin Cash above the 50-day SMA on April 08 but the price turned down on the very next day. This shows a lack of demand at higher levels and shorting by the bears.

Therefore, the bulls will have to scale the price above the 50-day SMA and sustain this level to signal a turnaround in sentiment. If the BCH to USD pair breaks above $280, it is likely to pick up momentum. The first target to watch on the upside is $350 and above it $400.

Currently, the price has dipped back below the 20-day EMA, which is a negative sign as it shows a lack of buying support even at lower levels. A break below $200 will turn the tide in favour of the bears. The next support to watch out for on the downside is $133.67.

 

BSV/USD

Bitcoin SV surged above the 50-day SMA on April 8. Though this was a huge positive, the bulls could not scale the price above $233.314, which is the 50% Fibonacci retracement of the recent decline. The price turned down from $227.

Both the moving averages have converged and flattened out. The RSI has also been trading close to the midpoint, which suggests a balance between the bulls and the bears.

A break below $175 can drag the price to the next support at $146. If this support also cracks, the BSV to USD pair can plummet to $120.

On the other hand, if the bulls can scale the price above $227, a move to $268.842 and above it to $319.424 is likely.

 

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

Have a fantastic day!

Live from the Platinum Crypto Trading Floor.

Earnings Disclaimer: The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.