Bitcoin Bulls Still in Control as Market Tests $7,000
Bitcoin has inched higher on the week but, remarkably, has failed to trade above the $7,000 resistance level. We noted last week that a pullback may occur from the failure at that level, so we shall see. Buyers are still outweighing sellers for a fourth-consecutive week, however, which is a positive.
Elsewhere, global stock markets saw their strongest week since the 1970s, whilst gold also rallied.
The recent panic in markets has flushed professional investors out of many asset classes and BTC will not be top of their list at the moment. For example, the U.S. central bank flooded markets again with a promise to prop up junk debt markets, so investors will be rushing there, and into stocks that they see as undervalued on the dip.
The risk for investors is that they may be underestimating the destruction in the world economy with developed nations still on full lockdown.
Researchers Glassnode have noted that Bitcoin “whales” (large investors that hold at least 1000 BTC) are currently holding more Bitcoin than they have in two-years. While the traders and short-term investors may have been cleared out of BTC by the panic, it’s clear that these investors are happy to sit tight.
Litecoin Still Above $40.00 as LTC Joins Cred Lending
LTC was still trading above the $40.00 level on the week (it’s third-weekly advance), but volumes are still low and the risk of following BTC lower is still possible.
In development news, the Litecoin foundation recently teamed up with the top lending and borrowing platform Cred, to allow Litecoin holders to earn up to 10% interest on their coins. These types of use cases are standard in traditional finance and will be necessary if the crypto market moves towards mass adoption.
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.