The cops pulverize the next resistance
In a rush, the No.1 crypto currency breaks through the important USD 8000 mark on Wednesday, causing a furore among investors. The 3rd Bitcoin Halving Event is imminent and the starting position could hardly be better. Meanwhile, the alternative assets can use the slipstream of the Bitcoin for their own price gains. We look at the current events in the crypto space.
Bitcoin course in detail
At the time of writing, Bitcoin is trading at USD 8036, which represents a daily gain of a whopping 4%. The 24 hour volume of approx. 38 billion USD underlines the increasing interest of investors. The upcoming Halving Event is driving searches to record levels and the traditional markets have been performing strongly for weeks. At first glance, one could get the impression that the consequences of the coronavirus pandemic have been contained. On the other hand, if you take a look at the rising unemployment figures in the US, you will come to a different conclusion. But how is this connected?
Markets rise during the crisis
The rising stock indices do not really fit into the picture of a tangible economic crisis. There are two common approaches to explaining market behavior. On the one hand, many experts assume that the crisis has already been fully fed into the share price. After the global outbreak of the pandemic, Wall Street had to suspend trading on several occasions. Investor panic left the major stock exchanges with record losses, the last of which was seen in 2008. It is therefore possible that rescue packages and other measures could mitigate the consequences of the pandemic and that the actual damage is less than the predicted trends.
Option B: In the middle of the bear market
On the other hand, many experts assume that we are in the middle of a solid bear market. If this is the case, the current uptrend could be a typical part of a bear market. For Bitcoin, however, this would not necessarily result in a crash. It is quite conceivable that the “digital gold” may be able to isolate itself from the traditional markets due to the pending halving.
Supports & Resistance
After breaking through the $8000 barrier, the bulls are now targeting the resistance at $8200. Many indicators are pointing to a sustained bull run, but keep an eye on Wall Street. If the traditional markets play along, Bitcoin could benefit from a combination of hype and momentum. In that case, a quick push into the five-digit USD range would be quite realistic. From a bearish perspective, the trend line at $8000 now forms the new support area. Further down the line at 7600 USD would provide support.
Ethereum above the $200 mark
While most investors are looking at Bitcoin, the Altcoins are picking up speed. Ethereum climbed above the important $200 mark on Monday and is now facing resistance at $208. At the time of writing, the Bitcoin Dominance Index is at 64%. The market shares therefore remain at the same level, despite the upcoming halving. In the top 30, all coins can record price gains on Wednesday. The Crypto-Space benefits from the strong BTC performance.