Cryptocurrency Market Update: Bitcoin decoupling narrative gathers strength
|- Bitcoin is decoupling from the traditional markets.
- BTC/USD is in retreat after an unsuccessful attempt to move above $7,000.
The US Senate passed a new stimulus package on Tuesday to provide financial support for small businesses hit by coronavirus lockdown, fund more extensive testing and support hospitals. Notably, a few weeks earlier, the U.S. lawmakers approved$2 trillion federal stimulus program. Trillions of dollars printed and poured into the financial system will result in growing inflation pressure and dollar devaluing, which is often considered as a positive signal for Bitcoin and other digital assets.
However, Bitcoin's reaction is muted as it continues wobbling around $6,900. The initial sell-off on Monday caused by oil price collapse was short-lived and triggered new wave of "decoupling" discussions. Notably, such traditional safe-haven assets as gold and U.S. Treasuries were also under pressure, while the US Dollar gained ground.
Top-3 coins overview
BTC/USD is changing hands marginally below $7,000 as the cryptocurrency is directionless amid chaos and uncertainty of the traditional markets. The first digital coin has stayed mostly unchanged in the recent 24 hours as the upside momentum faded away on approach to the critical resistance of $7,000. strengthened by 1-hour SMA200; however, once it is cleared, the price will jump to $7,150. A failure to move above $7,000 may increase short-term bearish pressure and push BTC towards $6,500.
ETH/USD tested area above $176.00 amid the recovery attempt on the cryptocurrency market. At the time of writing, the coin is trading at $175.80, moving within a short-term bullish trend amid expanding volatility; A sustainable move above psychological $180.00 is needed for the upside t gain traction. Otherwise, the coin is likely to stay range-bound.
XRP/USD is locked in a tight range $0.1800-$0.1900 moving within the short-term bullish trend in sync with the market. From the long-term perspective, psychological $0.2000 serves as critical resistance, while the support is seen at $0.1700 (23.6% Fibo retracement)
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