Weekly Market News and Price Update 05.04

Top News for This Week:

Binance to acquire CoinMarketCap.com

Source: Cointelegraph.com

An official announcement was made on April 2, by Biance CEO Changpeng Zhao that the popular exchange will be purchasing cointracking website CoinMarketCap.com.

CoinMarketCap.com has long been an industry leader and is one of the most visited crypto-related websites. So far, the crypto community has responded positively.

No further details are known for now, however, the purchase price is rumored to be around 400 million USD.

Read more on cointelegraph.com

Billionaire Chamath Palihapitiya believes it’s time for Bitcoin.

Source: Cointelegraph.com

CEO of venture capital firm, Social Capital and former Facebook executive, Chamath Palihapitiya believes it is time for Bitcoin to shine. In a recent interview with Anthony Pompliano, he states:

“This is either zero or millions, because what it will do is it will create a quasi-gold standard. It’ll create an index, except instead of having to own gold, where gold is owned by central banks, it is an instrument that has value that’s determined by and between its participants, and it’s owned by everybody.”

However, Chamarath also thinks that the market right now is still too volatile to consider it a safe haven asset. Most of the activity comes from traders and speculators.

Read more on cointelegraph.com

Bank for International Settlements researchers believe that the pandemic may help accelerate the adoption of digital payments.

Source: Coindesk.com

In a forecast released on the 3rd of April, Bank for International Settlements (BIS) has looked at the future of physical cash and how it is expected that more digital payments will be used in the future.

The debate over central bank digital currencies (CBDC) could reignite due to current fears of virus transmission by physical banknotes and coins:

“The pandemic may hence put calls for CBDCs into sharper focus, highlighting the value of having access to diverse means of payments, and the need for any means of payments to be resilient against a broad range of threats”

 Read more on Coindesk.

Technical analysis of Crypto majors:

BTC/USD

Bitcoin has a market cap of 124.3 billion USD and trades around 6,752 USD on Coinbase as the price has set another higher local high this week.

After a brief retest of 7k resistance and 50% Fib retracement on the 2nd of April, a rejection for further upside was seen. Previously the price did set a slightly higher high, therefore, we are still in a retracement from the previous major downswing.

Overall, the 6.5-7k area is an important previous support and a reversal from this area towards more downside is highly possible. However, both 100 and 200 day moving averages are still trading much higher. Therefore, further upside in the upcoming weeks is still a possibility. Much depends on what the price action will be in the upcoming weeks.

For now, it would be best to remain neutral and wait for further price action development as the market does not show clear signs for the next move.

BTC/USD Daily:
ETH/USD

Ethereum currently has a market cap of 15.67 billion and trades at 143 USD on Coinbase as it still trades around 130-140 USD area.

Since the price has not retraced enough from the previous major downswing, a short position does not offer a good risk/reward potential. Alternatively, a long position after such a dramatic sell-off would mean going against a very strong bearish momentum.

A potential area of strong resistance can be seen around 180-200 USD as both 100 and 200 day moving averages are currently trading close by. Additionally, 50% Fib retracement can be seen at 190 USD.

Therefore, a further retracement to the upside is needed and the best option would be to stay neutral for now.

ETH/USD Daily:
XRP/USD

Ripple currently has a market cap of 7.9 billion and is trading around 0.179 USD on Coinbase as it continues testing previous support turned resistance around 0.18 USD.

Overall, the price has not retraced enough to consider a medium-term short position along the overall several year bearish trend.  An area where resistance could be found can be seen around 0.22-0.26 USD as it is where both 100 and 200 day moving averages are located in addition to 50-61.8% Fib retracement.

Therefore, a further retracement to the upside is needed and the best option would be to stay neutral for now.

XRP/USD Daily:

Crypto of the week:

ChainLink  (LINK) currently has a market cap of 0.8 billion and is trading around 2.29 USD/ 0.00033786 BTC on Binance.

Looking at a daily chart, an uptrend against Bitcoin with a clear ascending trend line supporting the price action can be seen for the past year. The third touch, that confirmed the trend line, was seen in the first week of this year and resulted in an upswing of over 135% to the current several-year high of 0.00056739 BTC in the following months.

After the high was set, a retracement between 61.8% Fib level has already been made, therefore, offering a good potential entry right now. Additionally, the price is currently trading between both 100 and 200 moving averages and is closing in to retest the yearlong support trend line.

Therefore, LINK/BTC still looks bullish and could be a good way to outperform Bitcoin in the upcoming months.

LINK/BTC Daily: