Cryptocurrency Market Update: Bitcoin to approach $20,000 this year due to COVID-19 pandemic

Bitcoin is regarded as one of the main beneficiaries in the current economic turmoil caused by COVID-19 and global lockdowns that caused many economies to grind to a halt.  The current conditions are creating a favorable fundamental environment for the cryptocurrency industry and accelerating Bitcoin’s maturity, according to Bloomberg Intelligence analysts. In the June 2020 Crypto Outlook, they point ed out, that BTC rejected from the support area even amid stocks and oil decline.

The coronavirus is accelerating Bitcoin's maturity vs. the stock market and crude oil, supporting price appreciation for the crypto, in our view. Amid historic declines in equities and the world's most significant commodity, the first-born crypto's probe lower was promptly rejected, indicating a firming price foundation.

Bitcoin prices may continue appreciating and moving to a digital gold status amid unprecedented central-bank stimulus. According to Bloomberg analysts, Bitcoin’s price movements reflect the situation in 2016. It the history repeats, BTC may approach $20,000 this year.

Top-3 cryptocurrencies price updates

Bitcoin (BTC) settled above $9,700 after a consolidation inside a tight range during the day. The first digital coin has gained 1.6% on a day-to-day basis and stayed unchanged since the beginning of Thursday. The next major resistance comes at $10,000. On the intraday level, the support is created by 1-hour SMA50 at $9,600, while the local resistance comes at $9,800 with Pivot Point 1-day Resistance 1 located above this level.

Ethereum tested the low of $236.20 on Thursday but managed to regain the ground and settled above $244.20 by the time of writing. The second-largest digital asset has gained 2.3% on a day-to-day basis and stayed unchanged since the start of the day. The price needs to gain ground above $250.00 to improve the short-term technical picture and allow for the recovery towards the recent high at $254.00. The critical support is created by $220.00.

XRP/USD recovered from the intraday low of $0.1999 settled above the pivotal $0.2050. The further recovery depends on the bulls’ ability to take the price above $0.2150. This resistance is created by daily SMA200 If it is broken, XRP/USD may retest $0.2250.