The COVID-19 pandemic has resulted in the surge of unemployed Americans from 3.3 million 6.6 million. If these numbers keep increasing, the US government might have to roll out another series of the stimulus package. If this happens, the dollar rate might fall due to the continuous printing of money.
Investors will then have to look for safe-haven assets that can secure and improve the value of their portfolio. In recent times, gold has been having issues of supply due to large demand. With the scarcity of gold would, investors would have no choice but to go for the next safe-haven asset, Bitcoin.
BTC has been going bullish for some days now, will this upward trend continue? Let's examine the charts
BTC/USD
On the 1st of April, BTC was able to exceed the 20-day EMA at $6526. This was because the bulls were purchasing the dip. On the 2nd, the price was pushed over the $7000 resistance.
The bulls couldn't hold BTC above $7000, however, it is evident that the bulls are still purchasing the dip as BTC did not fall under the 20-day EMA.
Presently, there's an equilibrium of sellers & buyers as the RSI is not far from the midpoint.
If BTC/USD goes under the 20-day EMA, the price might fall to $5660.47. The chances of this occurring are low but if it does happen, it'll be a massive negative.
However, if BTC pushes over $7000, this would be a signal strength and the new support will be at $7,704. If it crosses this support, then it might proceed to $9000. We advise traders to retain their buy trade, stop-loss at $5600.
ETH/USD
On the 2nd of April, ETH failed to go over the $155.612 resistance after breaking the 20-day EMA. But if ETH doesn't go under the 20-day EMA, there could be another bull attempt to surge past the $155.612 resistance.
A new uptrend could begin if the attempt is successful. There may be resistance at $189, but the bulls might cross this without much effort. Our anticipated move is to $250. We advise traders to hold their buy trade, stop-loss at $117.
However, if ETH/USD goes below $155.612, it could remain range-bound for some days. If it then proceeds to go under the $117.09 resistance, that'll be a big negative.
Note: This post is culled from an original article by cointelegraph
