Bitcoin Makes Fragile Steps Up, $5.5k–5.6k Is a Must-Hold — Price Analysis

  • LTF (Low timeframe) trend: We might see a small uptrend here
  • MTF trend: Things are very bearish at present
  • HTF trend: Unknown trend

We discussed yesterday the prospects of salvaging Bitcoin’s (BTC) multi-year market structure, and today, that prospect has not yet been lost. The leading crypto has taken a cautious first step overnight at making a serious leg up; but in a rapidly destabilizing global economy, there is no reason to presume that Bitcoin will ultimately maintain these levels.

We start on the 4-hour, and see that a bull divergence on the RSI has translated into a position above the 8 EMA that is holding for now. We need to see this hold, and take the 21 EMA as well, if we are going to see $5,600 survive for the week.

Need the 21 emaBTC chart by TradingView

The histogram here is showing some decent strength, but again, we need to see that bullish contraction continues. From here, it doesn’t look like $5.6k is off the table; and as we see below, this is an uber-critical level.

On the weekly, we see that the 200-week SMA is at risk of being lost for good. The 200 week has basically never been lost in Bitcoin’s history, only being marginally closed-under a couple of times in 2015 – and not even as much as it did last week.

Risk of losing it allBTC chart by TradingView

If we do not see this level retaken at week’s end, there is a pretty good chance that Bitcoin will take another huge leg down into the $3,000 range where the next volume gap lies.

Finally, the coincidence of Bitcoin’s price action with traditional markets now seems irrefutable. Many speculate that Bitcoin will, at some point, ‘decouple’ from those markets. But if we look at a comparison to the S&P500, DJI, and precious metals, we see that this doesn’t seem to be happening yet.

Correlated (for now?)BTC chart by TradingView

The markets are definitely still coupled, and so far the only difference is one of degree rather than of kind. We will keep an eye on this new front in Bitcoin watching, since we may be witnessing Bitcoin’s first experience within an economic crisis.

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

Featured Image Credit: Photo via Pixabay.com

Tim Draper Reveals He Owns Cryptocurrencies Other Than Bitcoin

Michael LaVere
  • American venture capitalist Tim Draper revealed owning more crypto-assets than just bitcoin.
  • Draper expects the value of bitcoin to increase as a result of the Federal Reserve's money-printing tactics. 

American venture capitalist and bitcoin bull Tim Draper claims to own “a lot of other cryptocurrencies” in addition to BTC. 

Speaking in a recent interview with British entrepreneur Rob Moore, Draper claimed that his diversified portfolio in crypto-assets had led to him being “surprisingly up” despite the economic impact of the coronavirus. 

He said, 

You know, when I played Monopoly, I never showed anybody how much money I had so so that you're not gonna get an up or down.

Draper also criticized the U.S. Federal Reserve’s money-printing response to the COVID-19 pandemic, which he said would lead to the dollar crashing in value. He claimed the impact of the falling dollar would drive more value into bitcoin. 

He said, 

There are only 21 million of them and they are going to be more and more valuable as you see governments have less and less.

Draper continued, saying his experience working as a venture capitalist and interviewing entrepreneurs has given him a “pretty good view” of what the future is going to look like. He expects governments to move towards decentralization in a competition for their own citizens. 

Featured Image Credit: Photo via Pixabay.com