Analyses

Visa Move Marks Another Very Positive Week for Crypto – Analysis, 5 Apr

Technical Analysis Bitvalex 5 April 2021

We have just witnessed yet another very positive week for the cryptocurrency market from a fundamental point of view. On March 29th, VISA announced it would use the Ethereum blockchain to allow its customers to settle payments in cryptocurrency. For its cryptocurrency payments, VISA tested USDC – the second-largest stablecoin after USDT.

On the next day, PayPal revealed they were working on a crypto checkout service to allow their customers to pay in Bitcoin, Ethereum, Bitcoin Cash, and Litecoin at millions of online merchants worldwide that accept PayPal.

On March 31st, Goldman Sachs announced they would begin to offer Bitcoin and other cryptocurrencies later this year to the bank’s wealthy clients. With this in place, the crypto community expects an influx of institutional investors in the second half of the year.

Last week it also became clear that Coinbase, the leading US crypto exchange, will go public on April 14th. The initial public offering (IPO) is expected to be one of the biggest IPOs among technology companies in the stock market. Some experts compare it with the hype of Facebook’s IPO in 2012.

Such kinds of events are undoubtedly bullish for the crypto market. Many experts expect the positive effect to take place later this year. That is why major players are shifting money away from traditional financial assets into cryptocurrency. According to J.P. Morgan, institutional investors are choosing Bitcoin over gold:

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Source: Twitter

Although the long-term fundamentals are very positive, in the short-term, the cryptocurrency market is still consolidating. At the time of writing, according to Coin360.com, one Bitcoin costs €48,750.13 (-0.56%), one Ethereum – €1,729.61 (-0.04%), and one LINK – €25.43 (-1.78%): 

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Source: Coin360.com (Daily crypto market performance)

Now, let us analyze the price charts of the leading cryptocurrencies in the most notable time frames.

BTC/EUR

In the monthly time frame (MN), in April, BTC/EUR formed another bullish candlestick with a local high above the previous ones and a local low above the previous ones:

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The continuation of the sequence of candlesticks with ascending local lows and local highs indicates that the bullish trend remains in place.

In the daily chart (1D), last week, the price of Bitcoin received support at the 30-day Moving Average (MA 30) and rebounded from the trend line. Now, it continues to move upwards.

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Because in the crucial time frames the sentiment remains bullish, we think that, in the 4-hour chart (4H), BTC/EUR will continue to move within the trajectory of the Rising Wedge:

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ETH/EUR

In the 4-hour chart (4H), ETH/EUR has already exited the Symmetrical Triangle:

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The Symmetrical Triangle is a typical trend continuation pattern. Therefore, it is highly probable that ETH/EUR is resuming the uptrend.

If there is a price pullback and the price bounces off the upper line of the triangle, many traders will start opening long positions – a scenario we already outlined in our previous analysis.

LINK/EUR

It seems that LINK/EUR is consolidating in a broad range in the daily time frame (1D):

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As can be seen from the chart, right now, LINK/EUR is at the 30-day Moving Average (MA 30). Also, the 90-day Moving Average (MA 90) is in the lower part of the range.

We think that both MAs will support the price of Chainlink. That is why if the price drops to the lower part of the range, we expect a subsequent price rebound.

In our view, many traders will buy the cryptocurrency in the lower bound of the range and exit their positions in the upper bound of the range as long as LINK/EUR stays in this broad consolidation.

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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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