Cointree Crypto Market Update - June 3rd 2020
What a week in bitcoin! In the space of 7-days, the largest crypto by market cap rose 17% in a blistering $2,200 AUD rally from the lows. In parallel to $10,000 USD being reclaimed, bitcoin reached a high of $15,400 on the AUD charts.
At the time of writing, bitcoin fell back under $14,000 AUD after its surge, and now finds itself back under the 50 EMA. We can see that price action could not fall below the 50 EMA for a large part of the week on the 4hr chart and it provided a springboard for the powerful move-up.
In a strange confluence of events, the bitcoin thrust from $14,200 AUD coincided with Donald Trump’s fiery speech yesterday at the White House. In the past, bitcoin has reacted to geopolitical events and it’s hard to think it was a coincidence - regardless, the cryptocurrency market had been coiling up for a big move and we got it. In the short term, bitcoin appears to be taking a breath but we now turn our attention to overhead resistance and must reclaim the 50 EMA. The $15,500 AUD level is key to overcome, as it would signal that the bulls are firmly in control and $18,000 AUD is within reach. On the counter side, if this strongly contested area is firmly rejected again, the bears will step in as they did overnight.
In the broader market, whispers of “Alt-season” are upon us. Cardano and vechain saw huge gains, both up 50 + % for the week, and ethereum saw a blistering 22% rise over 7 days.