Bitcoin Tests $6,950 Level as Market Panic Subsides
Cryptocurrency markets were once again led by the broader financial markets after the recent bout of virus panic-selling. Stock markets managed to rally strongly from Tuesday into Thursday after the U.S. Congress signed a big stimulus package into law, aimed at injecting money into the struggling economy and supporting workers and businesses. This provided some support for assets like Bitcoin.
BTC moved higher on the week with the coin testing the $6,950 level for the second week in a row. The stimulus package, and the ongoing actions by central banks around the globe, have probably prevented a more significant rally in BTC, and the overall crypto market, as investors may have rushed into digital safe havens if banks showed signs of being in trouble. The $5,000 level in BTC saw buyers emerge and this level will have to hold for another move higher.
Litecoin Tracks Overall Market with Lack of Project News
With a lack of project news from the Litecoin foundation, Litecoin tracked the move higher in BTC, although the rally was lacking the same strength.The reason for this is a lack of retail buyers and LTC does not have the same infrastructure as BTC, which can be traded on futures markets.
For example, the 24-hour volume in Bitcoin was $29 billion, whilst it was only $2.8 billion in LTC. This has changed in the past when LTC led the overall market in the 2019 rally and if the crypto market can recover strongly, LTC would likely see similar strength.
The failure of Bitcoin to get above $6,950 over the last two weeks has seen the market pause for a breath, with BTC trading around $6,100 on Sunday. The market may try to the test the support levels again and the $5,000 level in BTC, and the $30.00 level in LTC could be good prices to get into these coins.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.