P95G Market Weekly Report — Week of 03/29/2020
The Bitcoin price went sideways for most of last week and failed to reach $7,000 as expected. It broke below the Keltner channel by the end of the week and fell to $6,070 at one point.
It is forming another sideway channel around $6,200 with low intraday volatility. With the lack of general direction, it is advised to wait for a breakout of the upper or lower Keltner channel to establish a new position. The current support is at $5,800, while the resistance remains at $7,000.
Review of the week:
Alex Saunders, the CEO & Founder of Australia-based Nugget News, offered a wave of discouraging catalysts that might have driven people out of cryptocurrencies, including a wrecked US job report that shows more than 3 million Americans filed for unemployment last week. He predicts a downside for stocks & crypto (or underway), with no convinced new investors buying Bitcoin, which suggested a potential drop in Bitcoin’s retail demand as jobless people turn to cash as their last resort amidst a pandemic. Meanwhile, institutional investors are also reducing their exposure in the cryptocurrency market for cash liquidity, to cover their margin calls or just hold it near to find buying opportunities in a wider bearish market.
Pantera Capital Founder and CEO Dan Morehead has predicted Bitcoin will “come of age” during the 2020 financial crisis and may top its all-time high price within 12 months. Morehead offered a grim prediction for the economy and said he believes the global economy is about to enter its first ever period of negative growth, severer than any post-war recession, and noted that Bitcoin has been correlated with the stock market in this and other market downturns. However, he said the cryptocurrency tended to be less correlated after the first month or two of stock market price falls. Also, he likened Bitcoin to bonds, which tend to shine in times of market turmoil, and predicted BTC will recover in stages before reaching a new all-time high.
Disclaimer: The above market commentary is based on technical analysis using historical pricing data, and is for reference only. It does not serve as investment or trading advice.
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