Crypto Industry News:
In a note published on April 15, the Federal Reserve Bank of Kansas City stated that Bitcoin is definitely not a safe haven, noting that as an asset it is far more risky than gold.
The central bank branch cited data from which it follows that Bitcoin shows a positive correlation with the S&P 500 index during periods of decline. 10-year treasury bonds and gold were at the opposite pole - negative correlation with S&P 500 was observed here. This shows that BTC has not achieved safe harbor status.
Although many agree with the Federal Reserve that Bitcoin is not digital gold, others note that this does not mean that the cryptocurrency will not become a safe haven. Gold has been on the markets for thousands of years, and BTC for a decade, but an increasing number of investors believe that buying BTC during a crisis is not a bad idea. For example, Arthur Hayes, CEO of BitMEX, wrote in a blog post that he believes investors should now buy BTC and gold. He referred to the fact that central banks today print money for power, which in the long run will reduce their value. On the other hand, BTC cannot be reprinted in this way.
Technical Market Outlook:
The BTC/USD pair has been trading close to the main channel lower boundary for some time now, but still there is no decisive move in this market. The bears have managed to push the price lower towards the middle of the range as the local low was made at the level of $6.706. The momentum is decreasing and moving into a negative teritorry, so the bears might extend the move down again. Please watch the level of nearest technical resistance located at $6,908 to invalidate the downward scenario.
Weekly Pivot Points:
WR3 - $8,288
WR2 - $7,759
WR1 - $7,459
Weekly Pivot - $6,596
WS1 - $6,675
WS2 - $6,137
WS3 - $5,855
Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in Bitcoin and treat BTC as a digital gold. The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.
