Bitcoin has started the day with a positive dynamic. At press time, the largest cryptocurrency by market cap is trading at $5,313.35 (+6.96%), according to CoinMarketCap.
Chart of the USD/BTC trading pair from EXANTE
For its part, Ethereum has grown to $118.12 (+5.41%), while XRP has climbed by 5.23% and is now trading at $0.149.
FxPro's team of analysts say:
"After falling to $4,600, Bitcoin has managed recover to $5,100. The best thing that could happen to the crypto market now is a consolidation near the current levels.
However, digital currencies are constantly proving it is always possible to fall even further. While no one can predict what will happen with the coronavirus epidemic, economic indicators are showing only negative signs, which is affecting all risky assets, including cryptos.
Closing borders and freezing trade will have a catastrophic effect on the global economic situation.The global community will probably end up facing a new financial crisis. Here is where Bitcoin must prove its best qualities.
Meanwhile, technical indicators show Bitcoin is being oversold. The greed and fear index is at around 8 on the 'extreme fear' level. Such low levels have been reached very few times: in February 2018 and August 2019, after the massive sale following the summer rally.
The RSI is also in the oversold zone, does this mean we will soon see a sharp rise? Not necessarily. We must now pay attention to the reaction of governments to the pandemic, which will determine the price of all assets."
According to CoinMarketCap’s ranking, 9 currencies on the top 10 are in green.
As for the market cap of all currencies listed in CoinMarketCap, it stays at $150,604,222,836.
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