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Is Bitcoin Eyeing $8,000 or $6,000?

  • Latest news affect the cryptocurrency market

Last week, a number of class-action lawsuits have been filed against 4 largest bitcoin exchanges and 7 ICO projects, including Binance, BitMEX, and EOS. All the lawsuits claim that these organizations allegedly sold unregistered securities to retail investors.

Some of the bitcoin exchanges have already dealt with persecution by the state and the U.S. Securities and Exchange Commission. Due to the “Covid-19” pandemic, the situation is slightly different. The US lawsuits against the crypto industry are more likely another attempt to stabilize economy and dollar. However, the future outcome of the proceedings will undoubtedly affect the entire cryptocurrency market.

According to the Head of UnionBank, Edwin Bautista, the transition of the banking sector to cryptocurrency against the background of the coronavirus pandemic looks very realistic. We may see a period of complete rejection of fiat money in cash. If banks support the initiative of small regulators who already cooperate with cryptocurrency companies, the industry will reach a new level.

In turn, the Fed and the ECB continue to “flood the fire” with cheap liquidity, which will cause a powerful wave of inflation. The Fed announced the launch of a $ 2.3 trillion loan program for small and medium-sized businesses and regional authorities in order to overcome the negative economic consequences of the coronavirus pandemic.

In such a situation, Bitcoin will soon not only break above$ 7,000 and $ 7,400levels, but will aim at$ 8,000 mark.

Last week, Bitcoin broke through the resistance and the price surged to $ 7,449. Besides, it managed to climb above the last support that existed before the plunge in March. However, it started to move down again and reached the weekly low of $ 6,744.

  • Technical Analysis

After a rebound and a short decline, Bitcoin is again trading around $6,700 — $7,000, however, the uptrend movement is yet to confirm.

BTC price went beyond the downward channel last week. Now we should expect the price may return to Support Level 1, then, the upward trend may resume.

The histogram of the 1-day MACD indicator is close to zero, and it is likely to continue to fall below zero.

Technical Support is expected around 6581.88/ 6383.48/ 6250.85

Technical Resistance is expected around 7230.00/ 7461.96/ 7516.85

Disclaimer

The material herein is provided for informational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell cryptocurrencies or derivatives. The material is not intended to be used as a general guide to investing, or as a source of any specific investment recommendations, and makes no implied or express recommendations concerning the manner in which any client’s account should or would be handled, as appropriate investment strategies depend upon the client’s investment objectives.

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