BTC/USD, H4 – Clearly, the outbreak of Covid-19 was able to push Bitcoin prices back up to test the 10,000 price level twice this month. The fact that the asset failed to pass the particular level explains the price behavior of cryptocurrencies, in accordance with the principle of safer haven groups that teased investors’ sentiment towards the overall picture of the economy.
After the announcement of Libra, which has gained momentum from the US government, Facebook has recently rebranded Libra’s digital wallet app from its former name Calibra to Novi. Facebook also hired former FinCEN director Robert Werner to be a consultant.
This news may boost the sentiment in cryptocurrencies in the market. Meanwhile, despite the fact that China has begun to experiment with digital Yuan instead of paper money in 4 cities, including Chengdu, Suzhou, Shenzhen and Song An, the Chinese authorities do not have a clear schedule for launch yet .It is expected that it will be during the 2022 Winter Olympics. However, it is expected that China may announce the launch of the Yuan faster once the Covid-19 crisis is over.
Analysts predict that the goal of launching the digital Yuan is not just to use instead of paper money, but will be a new battle against the US Dollar as well.
As for the technical perspective, the Bitcoin price failed to rise above the 10,000 level and began to see a downtrend, while the move found support to the 200-period EMA in the 4-hour chart this week. Yesterday the Bitcoin price rebounded from its 200-period EMA and moved above the 9,000 level again.
Earlier a bearish divergence was seen and the price broke below the upwards trend line (dotted line), causing the price to enter the downtrend frame again. Therefore, it is possible that the price of Bitcoin may retest the 8,000 area, which is the lower border area of the channel. However, the MACD is currently cutting up to the positive territory.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Recommended Content
Editors’ Picks
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.