This post is a translation of the weekly cryptocurrency analysis by Block Insight, a wholly owned subsidiary of Monex Group (Tokyo, Japan). Monex is the parent of TradeStation Group.
Summary
- Bitcoin (BTC) prices recovered mid-week as reports of a pilot version of China’s digital Yuan circulated on social media.
- Cryptocurrency investors digested IMF forecasts, deteriorating economic indicators, and plummeting crude oil prices.
- Investors can expect volatility as U.S. earnings season kicks off next week.
Market Trends This Week
Bitcoin (BTC) dropped slightly at the start of the week as the hash rates of Bitcoin Cash (BCH) and Bitcoin Satoshi Version (BSV) plummeted. BTC finished the week slightly higher near the $7,000 level. BCH’s halving event occurred last week. Miners have been exiting the ecosystem in droves, resulting in the crash. The BCH hash rate has now dropped 60% since April 6.
A flurry of global economic events had little impact on cryptocurrency prices. OPEC plus announced the largest historical cutback of crude oil production in its history. Even with this news, oil prices saw no relief. The International Monetary Fund (IMF) released poor economic forecasts. Global markets digested the headlines in stride, as lower economic expectations were already priced in.
After drifting lower to start the week, BTC rebounded on digital Yuan reports. Cryptocurrency exchange Binance took to Twitter to share the first images of the pilot version of a wallet app for China’s forthcoming digital Yuan. The pilot app for the digital Yuan is set to debut in four Chinese cities.
Shown: Weekly chart of BTC as it tries to overcome resistance
This Week’s Topics
- In documents filed to the SEC, Nasdaq-listed equipment maker Riot Blockchain (RIOT) says there has been “severe damage to virtual currency mining due to corona shock”. (4/12)
- Binance, a major cryptocurrency exchange, announced it now supports options trading. (4/13)
- First photos circulate of China’s digital Yuan user interface. (4/14)
Next Week’s Market Forecast
After a quiet week this week, prices may be subject to more movement as U.S. earnings season gets into full swing. Covid-19 headlines will continue to dominate headlines, as global markets digest the virus’s numbers.
The BTC price continues to battle resistance levels from late last year as it has for the past five weeks. Cryptocurrency investors will be keyed in on last week’s high of $7,400 as support and the week’s low of $6,400 for resistance.
