Bitcoin
BTC$70 763.94

0.94%

Ethereum
ETH$3 586.03

0.18%

Tether
USDT$0.999584

-0.04%

Binance Coin
BNB$585.91

1.33%

Solana
SOL$186.13

-0.14%

XRP
XRP$0.620961

0.34%

Bitcoin Soars High on Optimistic Mood on Stock Markets


April 2020

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 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 74.4% 44 $70 763.94 0.94% 5.67% $1 391 680 352 568 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 72.8% 48 $3 586.03 0.18% 1.28% $430 580 741 085 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 93.6% 1 $0.999584 -0.04% -0.13% $104 410 732 247 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 63.2% 80 $585.91 1.33% 3.31% $87 615 357 146 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 57.2% 89 $186.13 -0.14% -1.60% $82 695 918 849 SOL 7 days price change
6 XRP (XRP) XRP XRP predictions 84% 31 $0.620961 0.34% 0.45% $34 080 959 818 XRP 7 days price change
7 USD Coin (USDC) USDC USD Coin predictions 90.4% 2 $1.000145 0.02% -0.06% $32 217 331 035 USDC 7 days price change
8 Dogecoin (DOGE) DOGE Dogecoin predictions 66.8% 68 $0.214916 17.22% 41.76% $30 873 006 808 DOGE 7 days price change
9 Cardano (ADA) ADA Cardano predictions 67.2% 67 $0.650162 -0.02% 2.32% $23 133 135 789 ADA 7 days price change
10 Avalanche (AVAX) AVAX Avalanche predictions 56% 88 $54.19 -1.63% -1.34% $20 453 673 102 AVAX 7 days price change
11 SHIBA INU (SHIB) SHIB SHIBA INU predictions 56.4% 94 $0.000032 6.05% 19.52% $19 062 259 223 SHIB 7 days price change
12 Toncoin (TON) TON Toncoin predictions 60.4% 88 $4.90 -1.12% 18.21% $17 002 061 565 TON 7 days price change
13 Polkadot (DOT) DOT Polkadot predictions 70.4% 52 $9.54 -0.07% 1.08% $13 618 683 187 DOT 7 days price change
14 Chainlink (LINK) LINK Chainlink predictions 74.4% 42 $19.56 -0.52% 6.75% $11 482 801 678 LINK 7 days price change
15 Bitcoin Cash (BCH) BCH Bitcoin Cash predictions 70% 60 $567.19 15.24% 31.96% $11 163 033 918 BCH 7 days price change

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