What Comes after the Weekend Bloodbath – BTC, ETH, LTC Price Analysis, 9 Mar, 2020
On Tuesday, March 3rd, the US Federal Reserve System cut interest rates by half a percentage point at an unscheduled emergency meeting. It was the first emergency rate cut since 2008, and it also marks the biggest one-time cut since then.
Loose monetary policy may impact positively cryptocurrency prices in the long run, since it may spur inflation. For instance, the monetary aggregate M2 has increased almost twofold (from $7.4 trillion to $15.5 trillion) since the 2008 financial crisis, according to the Federal Reserve Economic Data:
However, in and of itself loose monetary policy conducted by the central banks all over the world is not enough for the market capitalization of the cryptocurrencies to skyrocket. Bitcoin's scalability problem is the main stumbling block for the crypto industry. That is what Brian Armstrong, co-founder & CEO at Coinbase, recently outlined in a Twitter post:
The weekend was a bloodbath for the crypto market and most of the digital currencies lost key support levels. For example, the price of Bitcoin lost support at the psychological level of €8,000 per one digital coin and dropped even further. At the time of writing, according to Coin360.com, one Bitcoin costs €6,999.45 (-9.14%), one Ethereum—€180.92 (-11%), and one Litecoin—€44.42 (-14.66%):
Daily crypto market performance. Source: Coin360.com
On the daily chart (1D), BTC/EUR is testing the upper line of the «descending channel»:
And, although, according to the technical analysis theory, the upper line of the «descending channel» may serve as a support line, at the moment there is no reliable signal indicating potential price rebound.
We think the price chart of BTC/EUR will continue to fluctuate near the upper bound of the channel.
On the 1-day chart (1D), the price of Ethereum against the euro has dropped to the 38.2 Fibonacci level (or €172) of the previous wave:
In our estimation, at the current level, ETH/EUR might find support and rebound to the 50.0 Fibonacci level (or €190).
In the 1-day time frame (1D), the price of LTC/EUR is heading towards the previous local low:
If LTC/EUR enters the range of the previous local low (that is between €32 and €42) it may face solid resistance and we may witness a significant price rebound.
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