Bitcoin, Ethereum & Ripple: prices that you should observe during the COVID-19 volatility
The monthly candle closing is one of the most useful tools for medium – and long-term technical analysis. Since the March, one of the most volatile and most off-putting months in the history of global markets, has become some traders to encounter the Crash with the right strategies, while others take advantage of the Situation already. In this article, the most important prices for Bitcoin, Ethereum, and Ripple will be demonstrated, as they most as a result of the COVID-19 pandemic, one of the volatile, but also the most promising arenas for risk traders see rich compared to.
BTC/USD: Has changed the Coronavirus track dramatically?
Bitcoin opened the year 2020 with an interest bullish technical bias by several signals such as the appearance of a Golden cross in the moving averages, and a +50% rally has been confirmed. But a panic seized also Bitcoin, since virtually every single financial instrument occurred after the COVID-19 pandemic in the foreground.
After a dramatic decline to 3,900 USD, the price of Bitcoin, however, showed a remarkable recovery of more than 65%, and ended the March in 6.438,64 USD, according to CoinMarketCap reported average numbers.
We take a look at the findings of the daily Chart:
- The unexpected turn of events, the Golden cross has, by the simple averages (SMA50 & SMA200) on 20. February was a set created out of force.
- The prospects could have in spite of the recent rally has changed dramatically since last Friday, a death cross has appeared. A death cross is a bearish indicator that has proved in most cases to be reliable for the medium-term distortions.
- The Fibonacci Retracements to give in rough outline some idea of the S/R levels for Bitcoin. For the middle levels the trader need to look at smaller time frames in more detail.
- The BTC is currently in a resistance bandwidth of between 6,400 and $ 6.600 $. A bullish Momentum could result in Nakamoto’s invention to the next FIB resistance around $7.200.
- The upward trend in the volatility, with a clear S/R level close to 8.475 USD, a clear resistance around $9.2 K (not Fibonacci), and a high volatility index, the psychological resistance of $10K is expected.
- In search of support could BTC the unstable area of 5,500 USD re-visit. The cops should not be able to defend these prices, you could test the BTC to their previous lows for the Year to the 3.9 K-Dollar mark again, before crashing into the lower region of three thousand dollars.
- Given the heady price action and the volatility that is due to the Coronavirus-crisis in front of the door, can change the technical Outlook, and we propose a continuous follow-up.
- Another decisive event, in just 42 days (according to bitcoin block half is to be reduced), since the “block rewards” of the miners of 12.5 BTC, 6.25 BTC. This appreciation of the Bitcoin network should be done every 210,000 blocks – about 4 years – and is referred to as “halving”. In the past, the halving of Bitcoin has pushed to the top. With a deflationary model of Bitcoin limited supply to a maximum of 21 million BTC, and reduces the output over time, in order to increase the demand and to avoid the issuance of inorganic money.
ETH/USD: The 3-digit battle
The market capitalization second largest crypto-coin crashed to the Coronavirus-concern and the price dipped briefly below the 100-Dollar mark. The decentralised development guide seeks to achieve the long-awaited all-time highs with strong fundamentals, but he has done hard to convince the cops about the economic scenario of “gloom and doom” across.
In contrast to Bitcoin, it has the ether price managed the bullish Golden cross up to keep, but is the daily Chart, a bearish flag?
- ETH is currently in the accumulation zone around $120~$135, but on the daily Chart, a bearish cross.
- Should acknowledge this Signal, could Ether go to a year-low of about 90 USD. This support should be sustainable, would ETH in a not-unlikely Worst-Case scenario, and again reach a 27-month Low of 81 USD.
- Once again sketching Fibonacci Retracements the most important S/R level, one should be careful when COVID-19-volatility. The most important resistance in the short term, is clearly found in the $154,5 to.
- Should it succeed in Ethereum, this level of breaking through, could be raised in the digital currency to the next resistance level around $ 190. The next medium-term levels to watch it, to be outlined by the following FIB Retracements clear: $227, $259 and $305.
- It should be mentioned once again that short-term levels can be better than an analysis with a smaller time frame to be determined.
- While the Golden cross is still valid, the Ichimoku cloud indicator is a bearish TK cross with the Tenkan-Sen the Kijun-Sen line down crosses. However, the sign of the cross over the Kumo cloud was pointing, what is on a gentle downward trend, typically temporarily.
- However, one should keep the ETH in the eye, because it is still in a confirmed up trend. The possible introduction of ETH 2.0 this year could also bring the bulls back, as this Upgrade is likely to change the entire game for Ethereum in the future.
XRP/USD: The bearish cul-de-SAC
While both Bitcoin as well as Ethereum have shown in the past few months, bullish technical indicators, seem to be to find a Ripple anywhere. XRP has drawn the stands in August 2019, a clear downward trend line with a lower low and it is not managed, the most important Resistances during Q1 2020-rally to break through.
However, it is affected to a lesser extent from the outbreak of the Coronavirus. While some of his counterparts experienced historical declines, is XRP only 18 % below its original price of 12. In March, the day on which the global markets have collapsed. We take a look at the daily Chart:
- The levels are not quite accurate and the volatility complicates the use of instruments such as Fibonacci Retracements, so that traditional chart techniques.
- A clear support to 0,247 Dollar is now the first critical resistance, after the recent collapse in sight.
- If the bullish liquidity is large enough, this resistance to break through, could XRP in an accumulation zone between $0.29 to~$0.33 to return, where he will rule for long periods of time remains.
- The trading battle field is above the accumulation zone is unstable, with a relative resistance close to 0,37 dollars and clear the psychological level of 50 cents.
- If the bears win the battle, could Ripple to fall again in the “danger zone” and the support to $ 0.13 to test again.
- Because of the Relative strength Index (RSI) is in the neutral Zone, there are no overbought or oversold conditions on the horizon, so that both bulls as well as bears will soon have to come to a decision.
