- The US Federal Reserve warns of a medium-term economic disaster as the COVID-19 curve remains uncertain.
- Bitcoin price could be taking advantage of the stimulus package to rally pre-halving.
- A prominent Bitcoin whale, Joe077 reckons that Bitcoin’s ‘one-week chart is the definition of an illiquid altcoin.
Bitcoin made a spectacular move on Wednesday and Thursday amid warnings from the United States Federal Reserve that the economy is staring into a "medium-term” disaster. The regulator has decided to keep the lending rates near zero and urged that more stimulus be advanced if and when needed. Global economies are on the verge of collapse as governments channel most of the resources towards the fight against the COVID-19 pandemic. According to the Fed Chair, Jerome Powell, the US economy will fall further on the account of three factors including the uncertainty of the Coronavirus curve, reduced production capacity and the crisis’ global dimension.
Bitcoin lift-off amid the US Fed warning
The largest cryptocurrency, Bitcoin made a remarkable move from levels under $8,000 to highs close to $9,500. The price action has left most investors in surprise because such a move was unexpected, especially two weeks before the halving. However, Joe007, a renowned trader has brushed off the surge as a “definition of an illiquid altcoin.” Another trader, ZeroHedge’s Tyler Durden in regards to the rally said:
Hilarious cycle it’s been through. My hope is that the halving will financially destroy as many Chinese miners as possible and we can actually have a legitimate bull market instead of this pump and dump movie.
Meanwhile, Bitcoin has retreated from $9,476 (April high) to the current $9,164. Its trend remains bullish even as the volatility continues to increase. The earlier published analysis found that Bitcoin had the potential to correct above $10,000 before the halving. However, the price action will depend on buyers’ ability to support above $9,000.
Chart of the day: BTC daily
Ethereum and Ripple price update
Ethereum also soared to new monthly highs after stepping above the resistance at $220. The bulls extended the price action above $225 but the momentum hit a wall at $227. In the meantime, ETH/USD has corrected under $220 and exchanging hands at $218.
On the other hand, Ripple surged to highs above $0.23 amid the widespread bullish action. Although the bulls had their eyes glued on $0.25, a high was reached at $0.2357, marking the end of the rally. At the time of writing, XRP/USD is valued at $0.2262 amid a growing bearish trend. If Ripple bulls can find support above $0.22 they will have the time to gather the energy to tackle the resistance at $0.24 and $0.25.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.