Cryptocurrency along with commodities and equities markets suffered the same fate from the COVID-19 panic sell-off as March 12 – 13 marked the multi-month lows across the board. More than a month has passed and markets are recovering slowly. However, some markets such as crypto and gold are faring significantly better than the others. Gold is back testing its multi-year high once again while cryptocurrencies are reclaiming their pre-crash levels.
Bitcoin (BTC) has seen approximately 7% gains during the past 24 hours and finally broke above horizontal resistance at $7,460 after multiple attempts over the course of the past 3 weeks.
The next major technical and psychological resistance tends to be at $8,000, representing a Fibonacci retracement and the pre-COVID crash level. Regaining this important territory will flip the overall price structure of Bitcoin into a bullish scenario again.
Ethereum (ETH) is currently testing the Fibonacci resistance level at $188 after briefly breaking above the level but failed to maintain the momentum. The short-term price target is at $195 while the sequence of higher highs and higher lows in the yellow channel below suggests a clear uptrend.
ChainLink (LINK) is one of the top-performing Altcoins so far this year with almost 120% gain YTD. At the moment, LINK is retesting the previous support level at $3.82 which has turned into a resistance. Fundamentals remain strong for LINK as DeFi is gaining popularity and major partnerships continue to roll out. LINK also climbed up the rank on SCN30 Index (+3 since the beginning of the month).
SCN30 Index reached an all-time-low at 75.41 points on March 16 after the COVID-19 dump, at the moment the index has recovered over 70% and is at 130.60 points. The SCN30 Index previously achieved an all-time-high at 208.46 points on February 14.
Learn more about SCN30 Index: https://scn30.NewsFirstLine.com/
The fundamental factor helping to boost recovery for crypto and other markets seems to be the ease of COVID-19 fear and tension. The WTI oil futures contracts for June are being traded in the positive territory once again after the unprecedented negative prices happened earlier this week.
In the US, initial jobless claims do not seem to be slowing down anytime soon, while the 6-year lowest sales record in the US housing market is affecting the US dollar valuation. This could potentially have a reverse effect on uncorrelated asset classes like gold, and hopefully, cryptocurrencies.
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