On March 27th, President Donald Trump signed the $2 trillion COVID-19 relief bill — the largest economic stabilization package in US history.
Many cryptocurrency enthusiasts view such kind of financial decisions as pro-inflationary. That’s why in a Twitter post, Blockstream Chief Strategy Officer (CSO) Samson Mow, a prominent Bitcoin maximalist, described Trump’s measures to combat economic uncertainty as an advertisement for Bitcoin:
Bitcoin Cash (BCH) proponent Roger Ver also expressed a similar point of view by saying that the purchasing power of the US dollar may reach zero:
Although the global financial situation is becoming more supportive of the crypto market, there are some endogenous factors that may put pressure on the prices of cryptocurrencies. For instance, recently the Bitcoin network’s hash rate has dropped significantly as some miners are moving away from BTC prior to the upcoming cryptocurrency halving:
At the time of writing, according to Coin360.com, the crypto market is relatively stable. One Bitcoin costs €5,709.33 (+2.62%), one Ethereum — €119.46 (+1.89%), and one Litecoin — €35.10 (+1.41%):
Now let’s analyze the price charts of the three cryptocurrencies against the euro.
In the 1-day time frame (1D), this past week BTC/EUR tested the lower bound of the previous local low’s range:
Although Bitcoin’s attempt to enter the range was unsuccessful and the price has declined, our guess is that within the next couple of weeks BTC/EUR will try to retest the levels of the lower part of the range.
On the 1-day chart (1D), ETH/EUR is hovering near the 7-day moving average (MA) Thus, indicating some indecision between the bulls and the bears:
Nevertheless, the price chart of Ethereum is still below the 30-day MA what may be considered an indicator for bearish sentiment.
However, we think that ETH/EUR will head towards…