P95G Market Weekly Report — Week of 04/05/2020
The Bitcoin price was able to break out of the upper Keltner channel at $6,540 and reached as high as $7,285 at one point. It went back to $6,818 which is near the resistance level from last December. The higher highs and higher lows show that the price is back on an upward trend.
The BTC price is expected to test the $7,140 resistance next week. If the momentum keeps up, the price can potentially go back to $7,650 in the medium term. For the time-being, wait for the price to break above the Keltner channel again near $7,000 and then enter a long position, with support at around $6,650.
Review of the week:
Despite the economic downturn induced by the coronavirus pandemic, Kraken CEO Jesse Powell predicts that Bitcoin (BTC) and the crypto industry as a whole will perform well in the months ahead. In an interview with Forbes, Powell reveals that while many companies are laying off workers, the San Francisco-based exchange is increasing its staff by nearly 10% due to an uptick in interest in the cryptocurrency market at large ever since the coronavirus surfaced in China. He says that both the cryptocurrency and traditional markets have their share of retail investors who make trades on a whim, and that Bitcoin has remained relatively stable, with the price rebounding by 30% plus last week. (Ref:https://dailyhodl.com/2020/03/31/kraken-ceo-says-bitcoin-btc-and-crypto-interest-surging-behind-the-scenes/)
A closely-watched Bitcoin (BTC) whale Joe007, who earned $20 million in realized profits on Bitfinex between February and March, says he expects more pain ahead for the global economy and predicts waves of volatility as governments push to prop up traditional markets and combat a devastating loss of jobs: “It is going to be the biggest economic shock of our generation. It will unfold in waves and over time, giving false hopes and then crushing them. The focus of the crisis will be shifting through different areas. Attempts to alleviate and solve one crisis will lead to more mess.” He expects investors to continue shifting assets to US dollars — a dynamic that pummeled equities and the crypto markets in March. (Ref:https://dailyhodl.com/2020/04/04/high-profile-crypto-whale-says-bitcoin-btc-in-the-crosshairs-with-massive-economic-shockwaves-ahead/)
In a letter to investors, CEO and co-founder of Quantum Economics, Mati Greenspan, says Bitcoin’s recent crash, along with traditional markets, is not surprising. He argues that concerns are overblown regarding whether the leading cryptocurrency still has a future after the volatile pullback: “There seems to be an existential question going around the crypto market at the moment where people are saying that if bitcoin can’t rise in this environment then it probably doesn’t have much of a reason to exist at all. After all, the narrative of using bitcoin as a safe haven in times of financial stress has been a rather strong one throughout the years and so now should really be BTC’s time to shine. Bitcoin was invented to give us an alternative to money that is controlled by governments and banks. The volatility is largely due to the fact that it’s quite new and adoption rates are unstable, which leads to large levels of speculation. So, a measure of success would be to see bitcoin remain on a slow but steady incline, rather than zooming towards the moon due to global uncertainty.” (Ref: https://dailyhodl.com/2020/03/31/bitcoin-btc-signal-flashing-buy-after-brutal-crypto-breakdown-according-to-analysts-at-bloomberg/)
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.
Point95 Global Ltd (“P95G”) has been at the forefront of digital asset trading since 2017 in providing “best-in-class” OTC brokerage, digital asset management, liquidity provision, and execution services. We also founded Coinviva Exchange, a digital asset exchange.
