WMA: Bitcoin drops briefly below $9,000 as markets brace for COVID-19 sequel
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This Week’s Summary
Crypto Trends 22nd – 28th of June 2020: PERFORMANCE & ANALYSIS
The last week of June was also this month’s worst period for the cryptocurrency market. Bitcoin’s much-expected surge towards the $10k level went the opposite way. Ethereum lost precious points in its bid to overcome the $250 level. Ripple’s XRP continues to bleed heavily, and most of the other altcoins dropped in value or remained flat.
Bitcoin started the week well, and by Wednesday afternoon, it had reached almost $9,700. Unfortunately, an elusive statement from the U.S Director of Trade Peter Navarro saying that the phase one trade deal with China was no longer on speared through the markets and caused BTC to tumble down to as low as $8,816.
Navarro retracted his claim the next day, but it was too late. The damage was already done. To make matters worse, on Friday, just as Bitcoin was gearing up for its recovery, the U.S. set a new single-day record of COVID-19 cases, with more than 40,000 new Coronavirus patients.
The fear of an imminent second wave of COVID-19 infections swept through the markets. The S&P 500, Nasdaq 100, and the Dow Jones Industrial Average (DJI) experienced a decline. Wall Street also decreased in trading operations, and the crypto market followed suit.
At the time of this writing, Bitcoin is trading at $9,020. The primary cryptocurrency is far from its $10,000 goal and faces an uphill battle to recover in the upcoming week. BTC should aim for the next level of resistance at $9,500, and move clear from the closest support levels at $9,000 and $8,700.
Ethereum also started the week well, and so a 1% increase in its early stages. Investors were optimistic about a spike that would take the Ether past the $250 threshold. Unfortunately, since Wednesday on, the second most popular crypto followed the market’s almost global downtrending trajectory. At the moment, Ethereum is trading at $220.
XRP lost more than 2% of its value over the past week. From last month’s ambition to overcome the $0.21 level, Ripple’s token has now reached a disappointing level, trading at $0.176. The next resistance level is at $0.192, while the nearest support lies at $0.171.
What’s in the News?
- Investors fear a second wave of COVID-19 as the number of infections worldwide surpasses 10 million, and the number of reported casualties across the world goes over 500,000
- Bitcoin is now available for purchase at Australian Post Offices
- Telegram agrees to pay SEC fine of $18.5 million and return $1.2 billion to investors as it dissolves TON
- PayPal may start selling cryptocurrency through its popular Venmo app
- Ross Ulbricht, the brains behind the infamous Silk Road website, recently penned down a piece on the Maker Dao Protocol
Next Week’s Market Forecast
In the upcoming week, the bulls will try to regain control of Bitcoin from the bears with a swift push towards the $9,500 resistance level, and hopefully beyond it. The fear of a COVID-19 sequel persists and it is palpable on all markets, so most investors should have a cautious approach towards most assets.
The expectations for the cryptocurrency market are high, and they come from similar precedents in its recent history. Extensive periods of Bitcoin value contractions have spurred spectacular price evolutions in both directions. So, everybody’s keen to see which patch BTC will pick next.