Analyses

Cardano Founder Shares Optimism About Crypto Industry, WTI Crude Oil Futures Drop Below Zero – BTC, ETH, LTC Price Analysis, 27 Apr, 2020

The cryptocurrency market will grow from billions to trillions of dollars, according to Ethereum (ETH) co-founder and Cardano (ADA) founder Charles Hoskinson. The prominent cryptographer and mathematician shared his optimism about the cryptocurrency industry in a recent interview with Cointelegraph.

Hoskinson explained that one of the key drivers of this potential growth is demographics. In his view, millennials are more interested in buying crypto instead of stocks, bonds, and other traditional financial assets.

Moreover, Hoskinson expects governments to start adopting blockchain technology and develop clearer regulation – another solid driver for the mass adoption of cryptocurrencies.

An interesting event from last week that may also increase the use and trust of crypto is the price collapse of crude oil West Texas Intermediate (WTI) futures. On Monday, April 20th, WTI futures dived below zero for the first time ever and even hit a low of minus $40.32 per barrel, before closing at minus $37.63 per barrel: 

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Source: MarketWatch

Because of the oil price debacle one very famous myth that cryptocurrency is the most volatile asset class was dispersed. Now oil is considered to be even more volatile than Bitcoin.

The Monday market is sending mixed signals: some of the cryptocurrencies are trading in the green zone, while others – in the red zone. At the time of writing, according to Coin360.com, one Bitcoin costs €7,112.79 (+1.72%), one Ethereum – €180.08 (+0.97%), and one Litecoin – €41 (-0.19%):

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Daily crypto market performance. Source: Coin360.com

Now let's analyze the price charts of the major cryptocurrencies against the euro.

BTC/EUR

In the 4-hour chart (4H), BTC/EUR is fluctuating within a «Rising Wedge»:

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According to the technical analysis theory, a «Rising Wedge» in a downtrend is viewed as a bearish pattern, indicating that the correction is losing strength and the resumption of the downtrend may start very soon.

However, we don't see any reliable bearish signal at the moment. That's why it is highly probable that BTC/EUR will move towards the next resistance level (R1) or the 61.8% Fibonacci retracement level (€7,365.44). The closest support level (S1) is the 50.0% Fibonacci retracement level (€6,644.45)

ETH/EUR

In the 1-week time frame (1W), at the moment, the price of Ethereum against the euro is slightly above the 50.0% Fibonacci retracement level (€178.39):

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It is important to outline that the weekly chart has formed a sequence of candlesticks with ascending local lows and local highs. That implies that the bulls have been stronger than the bears recently.

In our estimation, the most likely scenario is price consolidation at the 50.0% Fibonacci retracement level and then an attempt to reach the 61.8% Fibonacci retracement level (€199.47) may follow. We consider the 38.2% Fibonacci retracement (S1) or €157.31 as a solid support level.

LTC/EUR

In the 1-day time frame, LTC/EUR is forming a «Falling Wedge»:

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In our view, LTC/EUR finds solid support within the range of the Dec 2018 local low that is in the range between €20 and €40 per one digital coin. Because of it, we are leaning towards a bullish scenario in which the price of Litecoin continues to rise towards the upper line of the wedge.

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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.


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