Positive News Prevailed During the First Part of Last Week – Analysis, 19 Apr
The positive news in the cryptocurrency market continued to prevail during the first part of the past week. On Tuesday, April 13th, ConsenSys, one of the leading software development companies in the blockchain space, founded by Ethereum’s co-founder Joseph Lubin, announced it had been able to raise $65 million to accelerate the development of DeFi and decentralized applications on the Ethereum blockchain. Interestingly, many of the seed investors are well-known companies from the traditional centralized financial world, such as J.P.Morgan, Mastercard, UBS, etc.
On Wednesday, April 14th, Coinbase, the biggest crypto exchange in the United States, went public via a direct listing on NASDAQ. The stock price jumped from its reference price of $250 to over $400 initially, making the Coinbase listing one of the biggest in the Internet industry and comparable to Facebook’s IPO from 2012. Despite not being a supporter of centralized stock exchanges, the crypto community welcomed the Coinbase debut because this event marks the beginning of building the first significant bridge between the centralized financial world and decentralized blockchain-based space.
On the same day, Gary Gensler was confirmed as a new chairman of the Security and Exchange Commission. He is a former government official well-known for understanding the potentials of blockchain technology and being crypto-friendly. According to the crypto community, this is a signal that the USA, the biggest economy in the world, is going to become even more crypto-friendly and embrace the new technology.
On Thursday, April 15th, the Berlin Upgrade went live on the Ethereum mainnet relatively smoothly, even though there had been many skeptics who had been expecting Ethereum to collapse and to push the crypto market into a deep correction.
On Friday, April 16th, Robert Kaplan, the president of the Federal Reserve Bank of Dallas, stated: “Right now it’s clear it’s [Bitcoin is] a store of value” (an indicator that some of the US Federal Reserve officials are crypto-friendly as well).
However, during the last days of the week, some negative news occurred and overshadowed the initial positive sentiment. For example, at the end of the week, the central bank of Turkey announced it was going to ban the use of cryptocurrencies for payments for goods and services.
Also, on Sunday, some unconfirmed rumors appeared in the Twitter crypto community that the US Treasury is going to charge several financial institutions for money laundering using crypto:
Although last week started quite positively for the crypto market and most of the leading cryptocurrencies recorded new all-time highs, at the end of the week, the negative sentiment canceled the rally and caused a deep pullback. Now, early on Monday morning, the crypto market is starting to recover. At the time of writing, according to Coin360.com, one Bitcoin costs €47,499.22 (+1.89%), one Ethereum – €1,881.47 (+2.93%), and one LINK – €33.89 (+14.19%):
Source: Coin360.com (Daily crypto market performance)
Now, let us analyze the price charts of the leading cryptocurrencies against the euro in the most noteworthy time frames and try to figure out if the trend is changing.
Because of the recent flash crash, in the daily time frame (1D), BTC/EUR has dropped below the trend line and 30-day Moving Average (MA 30):
As can be seen from the chart, at the moment BTC/EUR is still slightly below the trend. Nevertheless, in our view, the uptrend remains in place, and only its slope is changing. The changing trajectory of the uptrend is visible in the 4-hour chart (4h):
If the price of BTC bounces off the lower line of the new Ascending channel, then many traders will start to enter the market by opening long positions.
In the daily chart (1D), ETH/EUR has successfully exited the Symmetrical Triangle. Now, it is forming an Ascending channel (uptrend):
As can be seen from the chart, ETH/EUR hit the upper line of the channel, and after that, a correction started. The pair will probably receive support at the 30-day Moving Average (MA 30) and the lower line of the channel (trend line). Then, the price may rebound from the trend line, and many traders will start opening long positions, trying to catch the next wave within the Ascending channel.
Last week, in the daily chart (1D), LINK/EUR exited the consolidation range:
As can be seen from the chart, the current price of the cryptocurrency is significantly above the upper bound of the range – an initial signal that LINK/EUR is trying to resume the upward movement within the Ascending channel. In our view, the price of the cryptocurrency will continue to move forward within the channel. In its lower bound, there is an accumulation of many technical indicators - such as the MA 30, the MA 90, and the trend line, that will support the continuation of the uptrend.
The weekly time frame (1W) confirms the bullish sentiment as well. LINK/EUR has started to draw a sequence of bullish candlesticks with ascending local lows and local highs:
Stay updated on everything Bitcoin-related with Bitvalex. Bitvalex is a licensed digital wallet and cryptocurrency exchange; learn more about us and blockchain technology and sign up to use our services.
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.