Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of BTC/USD for 07 April 2020

Crypto Industry News:
An ongoing coronavirus pandemic accelerates the development of the Central Bank Digital Currency (CBDC). In a published tweet, Deutsche Bank cites that the risk of coronavirus spreading will further motivate authorities to consider digital alternatives.

According to earlier reports, China has quarantined its banknotes in an attempt to stop the spread of the coronavirus. Research published in 2008 showed that the influenza virus was able to survive on banknotes for up to 17 days.

Governments are increasingly perceiving cash handling as a potential infection risk factor. This will probably become an additional reason why you should aim for digital currencies. Another Deutsche Bank tweet quotes her saying:

"The pathogen requires adequate solutions every hundred years. The obvious place to start is to accelerate the inevitable transition to digital cash."

Interestingly, the experts' comments contradict studies published by Deutsche Bank at the end of January. According to the report, cash will remain in circulation for a long time, despite a decline as a payment method and will not be replaced in the near future by digital currencies.


Technical Market Outlook:
The BTC/USD pair has made another higher high at the level of $7,390 after the breakout from the consolidation zone. Nevertheless, the rally has failed to continue and market has made a Bearish Engulfing candlestick pattern after the level of $7,390 was hit. If the bearish pressure will intensify again, then the price might move even lower towards the technical support located at $6,908 or even towards the level of $6,586.

Weekly Pivot Points:
WR3 - $8,726
WR2 - $7,938
WR1 - $7,363

Weekly Pivot - $6,545
WS1 - $5,997
WS2 - $5,159
WS3 - $4,567


Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in Bitcoin and treat BTC as a digital gold. The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.







Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020