The COVID-19 pandemic hit the digital assets market pretty hard. There was a massive drop in the prices of various digital assets, but this month, they have slowly started to recover. New support and resistance levels were reached, especially in the last couple of hours. At the time of writing the price is currently hovering at $8653 USD, which is up a massive $1000 in 24 hours! Considering the last twenty-four hours, the bullish pattern seems to continue.
Since most digital assets have been following a bullish pattern, their prices are being restored to normal. With the Bitcoin Halving event days away, their prices may change even further. It is uncertain whether their prices will rise or fall beyond the week’s growth. Volume would have to be up considerably over a couple of days for something to happen. While this wasn’t the case for the last month, it is essential to look back to identify how thirty days can affect the price.
Bitcoin entered into this month at $6,367 and is looking to close at more than $8,500. BTC hit $7.3K soon after the first week of April. However, it dropped to a new support level of $6.5K. But ever since then, the bullish pattern continued with a bit of a drop in between but last week was promising. The market value has crossed $8,600 last night and is looking to stay somewhere close to this mark. As of time of writing, the $9K barrier has already been breached. It may pick up new temporary resistance levels along the way, but the charts seem to indicate an upward trend for now. This is an exciting time for those who are following prices closely.
Over the last week, there has also been much talk on the BTC Fear and Greed Index. The index is currently at 26 (Fear), one less than yesterday. This index has values between 0 to 100, where 0 is Extreme Fear, and 100 is Extreme Greed. Extreme fear is when the investors are anxious, and this can be a potential opportunity to buy. Extreme Greed factors in when the market is rising.
With the price increasing slowly over the week, the Fear and Greed Index also seems to be rising, even after yesterday’s small decline.
Another notable FOMO moment for many is the Bitcoin Halving event which is due on May 12th. The price of Bitcoin is expected to increase due to more demand. The halving will, however, half the rewards for mining a block of BTC and people might consider mining not to be rewarding enough. Even though there might be a reduction of miners, investors are rapidly moving.
As Zipmex CEO, Marcus Lim wrote on LinkedIn Pulse on April 27th,
“In early February, Google searches for bitcoin surged by 33 per cent, demonstrating the increase in interest for an alternative to a bank controlled economy. As a result, out of all digital assets offered, I believe this could be Bitcoin’s year with an impending boom in digital asset adoption across the globe.”
Ethereum was at a low of $128 at the beginning of April. At the time of writing, ETH is currently at surpassing $220.
Within the first week, it hit a temporary resistance level at $170. Still, it then found a new support level and the price has been increasing with a couple of more resistance and support levels.
ETH market value has been on the rise overall with an increase of 53%
Ripple started this month at $0.17 and went up to $0.20 by the end of the first week. For almost two weeks the price remained at $0.19 and then suddenly crossed the $0.20 mark and rose to $0.22.
For most of this month, XRP had a value of $0.19 with a support level at $0.18 and a resistance level at $0.20. However, going into next month, new resistance and support levels might arise.
Currently, XRP is looking strong at $0.225, and the bullish pattern may continue. There has been an overall increase of 30.33% in its market value.
In March, Ripple had announced a partnership with DeeMoney that made it a capable pay-out partner for transactions internationally. On the other side of the coin, Ripple’s other partner Intermex claimed not to use Ripple’s technology in the South American Markets. This setback together with the MoneyGram XRP news in 2019, has continued to cause a negative taste for many XRP investors.
Hopefully, the rise of the digital assets in the last week is a sign of things to come.
Litecoin was valued at $38.36 at the beginning of this month and looked to close up by more than $48.61. For most of this month, LTC stayed above the $40 mark.
By April 2nd, the digital assets found a new support level at $40.48 and the price hasn’t gone below that mark the whole month. It also rose to new temporary resistance levels but is strictly following a bullish pattern.
Overall, LTC has seen an increase of 24.16%% this month in its market value, and this shows promising signs that the price will keep increasing amidst the coronavirus pandemic. The Litecoin Foundation has also been an executive producer for a comedy-horror film We Summon the Darkness. With the Litecoin Foundation helping the entertainment industry, they might benefit from some self-promotion to expand their market.
Bitcoin Cash (BCH)
Bitcoin Cash had a market value of $217.26 entering into this month, which suddenly rose to $231.29 the very next day. The bulls raged on, and the price even went up to $275 within the first ten days and found a new resistance level.
The price has dropped since then and found new support levels as low as $220. But it is starting to recover and is on the rise and by the end of this month might be well above $257.
BCH has seen an increase of 14.96% in its market price, and this looks good going into the next month although XRP does have a long way to go before it gets back to its all-time high of $508.54!
BCH had been through a halving on April 8th, and the rewards dropped from 12.5 BCH to 6.25 BCH. The halving slowed down the transactions per second, and BCH went down in just 24 hours.
Overall Market Analysis
Overall, the market analysis yields that all these digital assets have followed a bullish pattern. The entry market value into this month has been quite low for all digital assets coins. In contrast, the closing value has been significantly higher. This shows that the market has been recovering.
Hopefully, the bullish pattern will continue into the middle of next month, and the market won’t crash due to ongoing global economic issues arising from the COVID-19.
The Bitcoin Halving is an event to look out for as this might decide the fate of BTC. Many miners have already stopped mining since the last halving, claiming that the rewards do not compensate for the power and hardware used. Time will tell how many are left after the next event.
As the price of BTC gets affected so does the price of altcoins. So any drop or increase in the price of BTC might directly relate to a decline or increase in the prices of altcoins.