Cointree Crypto Market Update - June 17th 2020
In the week that was, bitcoin sits at $13,713 AUD after a breakdown from the key $14,000 level. The choppy indecisive price movements we saw in the week previous, finally gave way to a nearly 8% drop into May lows, where some major moving averages are giving buyers reason to be aggressive.
While market action was flirting with lower prices, bitcoin’s quick recovery has shown that the low $13,000 region is attractive for buyers with strong reactions off of the 50 EMA on the daily charts. Whilst bulls may have been gasping for air as the 50 EMA was breached for a second time in 7-days, the drop was short lived and never crossed the $13,000 level which could have triggered a greater fall.
Interestingly, we saw bitcoin bounce in-sync with US Stocks on the 16th, upon the news that the US FED would buy Corporate bonds, spurring another round of stimulus. If this current rally off of the May lows is to be believed, the 50EMA on the 4hr chart must be reclaimed and then the resistance level at $14,000 AUD. However, if this is the start of further downside, watch for bitcoin to lose the 200 EMA, which is supporting this move up.
In the broader market, a handful of cryptos saw massive gains as bitcoin dipped. Verge saw a strong move up 50%, siacoin was up 41%, while kyber token was up 38% over 7-days.