On April 2 the U.S. Labor Department reported that the U.S. weekly jobless claims skyrocketed to 6.6 million. In the previous week, the claims stood at 3.3 million, meaning over the past two weeks the number of laid off American workers seeking unemployment benefits has reached 10 million. If the numbers continue to grow, the government and Federal Reserve is likely to announce another round of stimulus measures.
All the money printing is likely to erode the value of the US dollar. In such a case, the investors will search for assets that can protect their buying power and add value to their portfolio. Author of ‘Rich Dad, Poor Dad’ Robert Kiyosaki said that people should “save gold — god’s money or Bitcoin — people’s money.”
Daily cryptocurrency market performance. Source: Coin360
Similarly, Max Keiser recently predicted that the current coronavirus pandemic will initially drive people into gold. However, later, as gold faces supply issues due to mass purchases, people “will start flocking en masse into Bitcoin.”
Bitcoin bull Mike Novogratz has reiterated his bullish stance on Bitcoin, projecting a retest of the all-time highs by the end of this year. In a recent interview, he said: “This is the year of Bitcoin and if it doesn’t go up now by the end of the year, I might just hang my spurs.”
With Bitcoin having made a bullish move in the past two days, can it extend its rally and pull other cryptocurrencies along with it? Let’s analyze the charts.
BTC/USD
The bulls bought the dip on April 1 and that helped Bitcoin (BTC) scale the 20-day exponential moving average (EMA) at $6,526. That was followed by another rally on the next day that carried the price above the horizontal resistance at $7,000.
Although the bulls failed to sustain the price above $7,000, the positive thing is that they did not allow the price to dip below the 20-day EMA. This shows that the bulls are buying the dips.
BTC–USD daily chart. Source: Tradingview
The 20-day EMA has flattened out and the relative strength index (RSI) is close to the midpoint, which suggests a balance between buyers and sellers.
If the bears sink the BTC/USD pair below the 20-day EMA, a drop to $5,660.47 is possible. A break below this level will be a huge negative and can result in a drop to the support line of the symmetrical triangle. We give this a low probability of occurring.
Conversely, if the bulls can propel the price above $7,000, it will signal strength. Though the 50-day simple moving average (SMA) at $7,704 is likely to act as a resistance, we expect it to be crossed.
After crossing this level, a rally to $9,000 is likely. For now, the traders can retain the stop loss on the long positions at $5,600.
ETH/USD
Ether (ETH) broke above the 20-day EMA on April 2 but failed to climb above the horizontal resistance at $155.612. Nonetheless, if the price sustains above the 20-day EMA, we anticipate another attempt by the bulls to scale above $155.612.
ETH–USD daily chart. Source: Tradingview
If successful, a new uptrend is likely. The 50-day SMA at $189 might offer resistance but we expect it to be crossed. The target objective is a move to $250. Hence, we have retained the buy suggested in an earlier analysis.
Contrary to our assumption, if the ETH/USD pair turns down from $155.612, a few more days of range-bound action is likely. The pair will turn negative on a break below the support at $117.09.
XRP/USD
XRP sustained above the overhead resistance at $0.17468 on April 1 but the bulls could not drive the price above $0.18867. This shows that the bears are unlikely to give up without a fight.
XRP–USD daily chart. Source: Tradingview
The 20-day EMA has flattened out and the RSI is close to the center, which suggests that the sellers are losing their grip.
Above $0.18867, the XRP/USD pair can move up to the 50-day SMA at $0.21, which might offer resistance. After this level is crossed, the next move can be to $0.25.
Our bullish view will be invalidated if the price turns down from the current levels and plummets below $0.16190. For now, the bulls can keep the stop loss on the long positions at $0.143. The stops can be trailed higher to $0.16 after the pair sustains above $0.19 for four hours.
BCH/USD
Bitcoin Cash (BCH) broke above the 20-day EMA on April 2, which is a positive sign. This signals that demand is picking up. If the bulls can push the price above $250, we expect a move to $350.
The 20-day EMA has flattened out and the RSI is at the midpoint, which suggests that the selling pressure has reduced.
BCH–USD daily chart. Source: Tradingview
Though the 50-day SMA might offer resistance, it is likely to be crossed. Therefore, we retain the buy suggested in an earlier analysis.
However, if the BCH/USD pair turns down from the current levels or the 50-day SMA and plummets below $197.43, a drop to $166 is possible.
BSV/USD
Bitcoin SV (BSV) has broken above the 20-day EMA but the bulls are facing resistance at $185.87. If this level is scaled, the next resistance is likely to be the 50-day SMA at $208 but we expect the level to be crossed.
BSV–USD daily chart. Source: Tradingview
Above this level, the BSV/USD pair is likely to pick up momentum and the up move can extend to $260.
Contrary to our assumption, if the price turns down from the current levels or the 50-day SMA and plummets below $146.96, a drop to $120 is possible. For now, the stops on the long positions can be retained at $146.
LTC/USD
Litecoin (LTC) broke above the 20-day EMA at $40.69 on April 2 but the bulls could not scale the price above the horizontal resistance at $43.67. However, if the price sustains above the 20-day EMA, we anticipate the bulls to make another attempt to push the price above $43.67.
LTC–USD daily chart. Source: Tradingview
If successful, we anticipate the start of a new uptrend. The first target to watch on the upside is $52.55 and if that is crossed, a move to $63.8769 is likely. Therefore, we retain the buy recommendation given in the previous analysis.
Our bullish view will be invalidated if the LTC/USD pair fails to break above $43.67. In such a case, it might extend its stay inside the $35.8582-$43.67 range. The pair will turn negative on a break below $35.8582.
EOS/USD
EOS broke above the overhead resistance at $2.4001 on April 2 but the bulls could not sustain the breakout. The price dipped back below the breakout level. Currently, the bulls are making another attempt to push the price above $2.4001.
EOS–USD daily chart. Source: Tradingview
If successful, the EOS/USD pair is likely to pick up momentum and move up to the 50-day SMA at $3.08 and above it to $3.86. Therefore, the traders can buy as suggested by us in an earlier analysis.
Conversely, if the pair turns down from $2.4001, it is likely to extend its stay inside the range. The pair will turn negative on a break below $2.0632.
BNB/USD
Binance Coin (BNB) has reached the critical overhead resistance at $13.65. Above this level, the bears are likely to defend the downtrend line aggressively. If the price turns down from the downtrend line and re-enters the $10.8427-$13.65 range, it will be a huge negative.
BNB–USD daily chart. Source: Tradingview
The 20-day EMA is flat and the RSI is close to the midpoint. This also suggests that the selling pressure has reduced.
A trend change will be signaled if the bulls can propel the BNB/USD pair above the downtrend line. Above the line, a move to $21.80 is possible. Therefore, we suggest a long position on a close (UTC time) above the downtrend line with a stop loss at $10.
XTZ/USD
Tezos (XTZ) is attempting to rise above the 20-day EMA at $1.74. If successful, a move to $1.955 is possible. We anticipate the bears to defend the zone between $1.955 and the downtrend line aggressively.
XTZ–USD daily chart. Source: Tradingview
If the XTZ/USD pair turns down from $1.955, it is likely to extend its stay inside the $1.4453-$1.955 range for a few more days.
Conversely, if the bulls can push the price above the overhead resistance at $1.955 and the downtrend line, a new uptrend is likely. Though the 50-day SMA might offer some resistance, we expect it to be crossed.
The target objective to watch out on the upside is $2.75 and above it $3.20. Therefore, we have retained the buy recommendation given in the previous analysis.
LEO/USD
The bulls have not been able to start a new up move following the breakout above $1.04. This shows a lack of buyers at higher levels. On April 2, Unus Sed Leo (LEO) dipped back below $1.04 but found support at the 20-day EMA at $1.019. This is a minor positive as it shows buying at lower levels.
LEO–USD daily chart. Source: Tradingview
Currently, the bulls are attempting to maintain the LEO/USD pair above $1.04. If successful, we anticipate the pair to pick up momentum on a break above $1.06.
Our bullish view will be invalidated if the price again drops below $1.04 and slides below the 20-day EMA at $1.021. Therefore, we suggest traders retain the stop loss on their long positions at $0.097.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.