The US officials have recently unveiled a $1.9 trillion aid package. As a result, the part of this sum will go to individuals in $1400 checks per person. The interesting fact that most Americans tend to invest the money they’ve got from the government. The survey of Mizuho Securities claimed that two out of five stimulus check recipients plan to invest at least some part of this money into Bitcoin and stocks. That means around 10% of total direct payments, equal to $40B, will flow to cryptocurrencies and stocks. Moreover, Mizuho mentioned that nearly 60% will go to Bitcoin: "this represents 2-3% of Bitcoin's current $1.1T market cap". Therefore, the BTC will rise and other cryptocurrencies should follow it as well. Let’s analyze BTC/USD and ETH/USD – the most popular cryptocurrencies.
BTC/USD is moving in an ascending channel in the long term. While in the short term, the price has formed a symmetrical triangle pattern. Thus, if the BTC breaks the upper line of this triangle at $59,000, it will skyrocket upward to the all-time high of $61,000. On the flip side, the move below the lower line of the triangle at $55,800 will lead the price to the 200-period moving average of $53,000. It’s worth mentioning, that the 100-period moving average also lies at $55,800, making this support level harder to break.
Pay attention that trading of BTC/USD is available in our app FBS Trader.
Let’s move on to ETH/USD. It has been moving sideways between $1715 and $1850 since the last week. If it manages to break the 50-period moving average of $1810, the way up to the high of March 20 at $1850 will be open. In the opposite scenario, the move below the intraday low of $1755 will drive the crypto to the 200-period moving average of $1715.
Trading of ETH/USD is available in our app FBS Trader.
This post is written and submitted by FBS Markets for informational purposes only. In no way shall it be interpreted or construed to create any warranties of any kind, including an offer to buy or sell any currencies or other instruments. The views and ideas shared in this post are deemed reliable and based on the most up-to-date and trustworthy sources. However, the company does not take any responsibility for accuracy and completeness of the information, and the views expressed in the post may be subject to change without prior notice.
Recommended Content
Editors’ Picks
AAVE proposes a slew of upgrades and expansions in plan for 2030
Aave has proposed a Unified Liquidity Layer, V4, and solutions to enhance and compete with zero-knowledge networks in its plan for 2030 and beyond. The proposal states that Aave aims to implement its plan together with the community within the next three years.
Top 3 meme coins Dogecoin, Shiba Inu and Bonk: Recovery likely if Bitcoin freefall ends
Meme coins Dogecoin (DOGE), Shiba Inu (SHIB) and Bonk (BONK) look primed for recovery, according to technical indicators, despite the broader crypto market correction prompted by the sharp drop in Bitcoin (BTC) price.
XRP tests $0.52 resistance while XRP Ledger developers propose lending protocol on the blockchain
Ripple has failed to close above $0.52 for five consecutive days, struggling with the sticky resistance. XRP holders digested the news of US Securities and Exchange Commission’s response to Ripple in its filing that addressed the issue of “expert testimony.”
Pepe whales buying spree could trigger 55% rally Premium
Pepe price shows signs of a potential comeback as it retest the a declining resistance level. A successful breakout could kick-start a 56% move to the upside as whales continue to accumulate on dips.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.