How are Bitcoin, Ethereum and Litecoin doing amid the coronavirus uncertainty – Price Analysis, 23 Mar, 2020
The global economy is being hit by high uncertainty because of the coronavirus. As a result, the sell-off in the financial markets continues—the prices of stocks, commodities, cryptocurrencies are declining. Investors are withdrawing their money from the markets since in times of crisis there is an age-old saying: «Cash is King».
To address the current economic uncertainty, governments and central banks all over the world have started implementing a variety of solid measures such as huge bailout programs for companies, massive asset purchase programs (QEs), extremely low key interest rates, etc.
Some cryptocurrency enthusiasts believe that Bitcoin with its upcoming halving will benefit significantly during such kind of global economic turbulence. For example, the prominent cryptographer and Hashcash inventor Adam Back compared the potential Bitcoin price increase with a short squeeze:
Galaxy Investment Partners CEO Mike Novogratz, another famous Bitcoin bull, also expressed optimism about Bitcoin’s future by writing that 2020 will be BTC’s year:
Although the crypto community still stays optimistic, the selling pressure on cryptocurrencies is not fading. At the time of writing, according to Coin360.com, cryptocurrencies remain in the red zone. One Bitcoin costs €5,396.55 (-7. 53%), one Ethereum—€113.93 (-7.9%), and one Litecoin—€33.29 (-7.19%):
Daily crypto market performance. Source: Coin360.com
Now let's have a quick look at the price charts.
On the 1-week chart (M), BTC/EUR is forming a bullish symmetrical triangle:
According to the technical analysis theory, a «Symmetrical triangle» is a continuation chart pattern. That’s why, theoretically, in the long run, BTC/EUR should resume the uptrend. However, if the price of Bitcoin drops below the uptrend line (the lower line of the triangle), a solid bearish trend may start and BTC/EUR may drop below the level of €3,000.
In our view, this is a very critical period for Bitcoin, and the symmetrical triangle is worth monitoring to see in which direction the price of the cryptocurrency will exit the triangle.
On the 1-week chart (W), last week ETH/EUR formed a spinning top candlestick pattern after the sequence of bearish candlesticks with descending local highs and descending local lows:
We think that the spinning top candlestick pattern is indicating indecision in the market or that at the moment both the selling and the buying pressures are steady. Nonetheless, we have to stay alert to a potential renewal of the bearish sentiment.
On the 1-day time frame (1D), LTC/EUR continues to fluctuate between the lines of the descending channel (downtrend):
In our estimation, in the next few days, the price of Litecoin will remain near the upper line of the descending channel and will continue to test the range of the last local low (or €32.50-€38.50).
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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.