Apr 3, 2020
Crypto Market Recovers? Positive Bias Above $7,000
30th March — 3rd April March Cryptocurrency market analysis
US stocks
An unprecedented round of fiscal and monetary stimulus had helped equity markets stabilize somewhat in recent sessions.
Trump shocked markets on Thursday by tweeting that he expected Russia and Saudi Arabia alone to cut about 10 million barrels — or roughly a 10th of global petroleum, sending oil prices soaring. Prices for Brent crude initially leapt by nearly 50 percent after Mr. Trump’s tweets but dipped again as it became unclear whether his supposed breakthrough would materialize.
Morgan Stanley has lowered its U.S. first-quarter GDP forecast to -3.4% from -2.4% and its second-quarter GDP forecast to -38% from -30%.
A-shares
In China, a private survey of factory activity that polls small and medium-sized firms, showed a modest improvement in March from a plunge the previous month. Markets seems to be still struggling to justify recent gains, with investors treating the recent expansion in China’s PMI readings with caution.
Due to the net capital inflow from HK and rest of the world, A-shares market price fluctuated repeatedly. Hot money will accelerate its influx into domestic stock and debt markets, increasing the risk of China’s asset bubble and damaging financial stability.
Risks in cryptocurrency market
More than $1 billion is currently transferred to two major stable coins, Tether (USDT) and USD Coin (USDC), as investors wait for a better time to invest in crypto assets. Over the short term at least, this is not a bullish sign. But it’s too early to celebrate, as other data suggests there probably aren’t enough buyers to drive a sustained rally.
Opportunity
Ashish Singhal, CEO of the exchange CoinSwitch.co predicted that the downside of crypto may be limited in the near term as the cryptocurrency is seen as a hedge to the massive inflation-boosting policies adopted by governments.
Nigeria launched its first Bitcoin ATM, signaling its entry onto the world crypto stage, and it plans to install another 30 BTMs all over the nation. Nigeria is the largest country in the African subcontinent and also a leading local virtual currency player. Blockstale’s Daniel Adekunle says that the Nigerians lead the continent in crypto trading volume.
BTC
So far, the cryptocurrency has struggled to decouple from the equity markets. On April 1 the price suddenly increased eight percent, surging from $6,221 to $6,661 in a massive green candle. If bitcoin manages to break above the $7,000, investors might experience a new wave of rebound.
On the downside, if Bitcoin breaks below, the next support stands at $6,154 the low from yesterday’s trading session. Investors can consider to buy-in at $5,300 if it falls.
ETH
Ethereum price upside movements limited by the trendline resistance, $145 and 142 hurdles. At the time of writing, Ether has a market value of $143.85. The price is doddering above the moving averages in the hourly range.
Ethereum is technically ready to lift off to levels above $160 but fundamentals keep lagging behind. It might be able to sustain the price above $140 if not $135. In case of increased selling activities, ETH/USD is likely to find support at $135, and pressure at $150.
Disclaimer
The information in this analysis represents Hyperion team’s opinions only and is not investment advice. Please do your own research before making any investment decisions. Cryptocurrency investments are volatile and high risk in nature. Don’t invest more than what you can afford to lose.
