Choppy Price Action Is Still the Trend in Cryptocurrencies

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Summary

  • Cryptocurrencies were flat on the week, as range-bound action persists.
  • Bitcoin (BTC) held onto price support near the $9,000 level.
  • Concerns remain about a second wave of the Corona Virus.

Bitcoin (BTC) continued to trade in a rather quiet, choppy fashion. Following the BTC halving, prices have gyrated back and forth in a range-bound manner, frustrating both bulls and bears. Crypto prices started the week on a positive note but surrendered early gains mid-week. The drop was spurred on by news that the U.S Director of Trade Peter Navarro said the phase one trade deal with China was no longer on. Though this led to a quick price shock, both equities and cryptocurrencies stabilized after the Trump administration clarified the statement and assured the public that the deal is still on.

In crypto specific news, reports emerged that fintech behemoth PayPal (PYPL) will roll out a service allowing users to buy and sell crypto through the firm’s popular Venmo app. PayPal already has an existing relationship with crypto exchange CoinBase.

This Week’s Topics

  • June 20th marked the first anniversary of Facebook’s (FB) announcement of plans to create the digital currency Libra.
  • Investors brace for potential “second wave” of Corona Virus as numbers rise across the nation.
  • Glassnode data shows that the number of Bitcoin (BTC) sent from miners decreased recently, indicating that inefficient miners may have potentially ceased operations.
  • BTC is now available for purchase at over 20,000 pharmacy chains and convenience stores.

Next Week’s Market Forecast

The technical picture of Bitcoin (BTC) and many of the other major cryptocurrencies remains the same. Range bound; directionless action continues to be the theme. Recently crypto markets have been somewhat correlated to equity markets. Gyrations in price continue to occur any time major headlines about Covid-19 numbers or the U.S China trade deal are released.

Bitcoin (BTC) bulls are still looking for price to get back above $10,000. The $10,000 level has been breached multiple times over the last few weeks, but the key is for price to hold above the level. For bears to gain momentum, price needs to get and stay below $9,000. Investors will want to stay tuned. Periods of long BTC price contractions have led to significant price movements in both directions.

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