Bitcoin
BTC$42 435.30

-3.82%

Ethereum
ETH$2 898.43

-7.49%

Cardano
ADA$2.23

-0.57%

Tether
USDT$1.001440

0.09%

Binance Coin
BNB$352.49

-7.00%

XRP
XRP$0.932568

-6.42%

Bitcoin Soars High on Optimistic Mood on Stock Markets


#Bitcoin

Last week ended with Bitcoin making yet another frog leap from the consolidation level at $6700 to the current phase of buying pressure at $7400. This price increase happened on the background of optimism, displayed on the traditional markets, which are believed to have an increasing correlation with that of Bitcoin.

A 5% price appreciation of the S&P 500 index translated to the 9.7% spurt performed by Bitcoin during a day and a half of trading, resulting in the new higher high at $7400. Over the week, BTC has shown a 16% price increase, which is only 0.4% short of its cumulative losses during the previous month. The first cryptocurrency, however, is still 8% below the point of the total recovery, but that gap could be narrowed, or even closed completely, in a matter of days, if not hours, given that the present bullish pressure persists.

4-hour Bitcoin/USDT chart

COVID-19 pandemic quietens - markets react positively


For the first time since the notorious coronavirus had been declared the global pandemic, the world has been given a chance to take a breather as the daily numbers of new cases and deaths stalled and even began to decrease in certain countries. This fact has immediately spurred the talks about the effectiveness of the global lockdown and the possible relief from the insane overload of the medical system worldwide.

The markets reacted immediately by initiating the most prolonged bull run since the inception of the crisis, which was also instigated, in no small way, by the $2 trillion economic relief package issued by the US government two weeks ago. While the containment of the virus spread is certainly a positive notion, the optimism that it instilled could be premature - the same applies to the optimism in the markets.

The injection of an unprecedented volume of liquidity, which, in essence, is just a product of the US money printing machine, is likely to be just a temporary relief, which could be followed by another slump once the impact of a global lockdown on the real economy begins to emerge, while the pumped-in liquidity will dissolve.

The anticipated global recession will surely have negative consequences for the price of Bitcoin since it is still widely perceived as a highly risky speculative instrument. Therefore, it is far too early to go long on BTC, or any other cryptocurrency, although the current market finally provides opportunities for swing trading.  

Awaiting a pullback


Even though it feels great to let go of panic and take a ride on a bullish wave, let’s not forget that on the macro level, Bitcoin is still deep in the bear market that has been worsened by the aforementioned factors. Therefore, traders should be prepared for a rapid pullback even if the price manages to test the 99-period EMA on the weekly time frame.

1-week BTC/USDT chart

Five weeks of uninterrupted growth in the present conditions must be already overheating the market, so there is a need for a healthy retracement to $6400 - $6700 - before or soon after the test of the 99 EMA - to allow the bulls to prepare for the next phase of price growth.

The 14-period RSI, which has also been moving within the confines of the downtrend, leaves enough space for such a move. Otherwise, we would strongly suspect the market manipulation carried out by the big capital for the purpose of creating an artificial demand only to drop the price below $6000 again.

Author: Alex Paulson for Crypto-Rating.com

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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap Volume 24h
1 Bitcoin (BTC) BTC Bitcoin predictions 86% 27 $42 435.30 -3.82% -10.67% $798 843 453 346 $41 875 933 869
2 Ethereum (ETH) ETH Ethereum predictions 74.8% 50 $2 898.43 -7.49% -16.63% $341 018 107 532 $25 119 846 328
3 Cardano (ADA) ADA Cardano predictions 64% 78 $2.23 -0.57% -6.34% $71 411 624 055 $5 734 484 720
4 Tether (USDT) USDT Tether predictions 96% 1 $1.001440 0.09% 0.11% $68 691 485 942 $92 416 325 974
5 Binance Coin (BNB) BNB Binance Coin predictions 60.8% 78 $352.49 -7.00% -14.45% $59 266 206 180 $2 064 251 017
6 XRP (XRP) XRP XRP predictions 75.2% 48 $0.932568 -6.42% -12.98% $43 567 385 538 $4 641 985 825
7 Solana (SOL) SOL Solana predictions 63.2% 83 $139.49 -5.82% -1.32% $41 467 489 552 $4 041 527 553
8 USD Coin (USDC) USDC USD Coin predictions 91.6% 1 $1.000761 0.07% 0.05% $30 432 510 822 $3 991 490 878
9 Polkadot (DOT) DOT Polkadot predictions 62.8% 74 $30.77 -2.94% -9.08% $30 391 187 124 $3 785 910 016
10 Dogecoin (DOGE) DOGE Dogecoin predictions 65.2% 78 $0.208918 -6.33% -14.44% $27 455 953 723 $2 219 973 271
11 Avalanche (AVAX) AVAX Avalanche predictions 63.2% 82 $73.45 -4.25% 12.05% $16 179 548 858 $2 391 193 014
12 Terra (LUNA) LUNA Terra predictions 68.8% 61 $34.85 -2.03% -0.58% $13 942 018 660 $2 307 928 114
13 Binance USD (BUSD) BUSD Binance USD predictions 95.6% 1 $1.000668 0.05% 0.05% $13 477 216 401 $6 991 450 944
14 UniSwap (UNI) UNI UniSwap predictions 65.2% 74 $19.64 -8.12% -20.80% $12 010 497 802 $461 226 982
15 Chainlink (LINK) LINK Chainlink predictions 68% 64 $22.80 -7.36% -19.93% $10 361 191 269 $1 641 630 892

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