The coronavirus pandemic has forced people to change many social behavior habits. In addition to maintaining social distance from one another, people also hate using banknotes, coins or cards to transmit COVID-19.
A new report from the Bank for International Settlements shows that social distancing measures and “government-to-person payment plans” have accelerated efforts to adopt central bank digital currencies (CBDCs). The paper shows that public interest in central bank digital currencies has overtaken Bitcoin (BTC) and Libra in 2020.
However, central bank digital currencies will only be a digital version of the fiat currencies that central banks will control. As a result, the problems currently plaguing the US dollar will even affect the digital version of the dollar.
After people become familiar with central bank currencies and realize their ease of use, they are more likely to turn to cryptocurrencies because of their inherent advantages over fiat currencies.
Despite its many advantages, Bitcoin still has its naysayers. Michelle O’Leary, Ryanair CEO, painted a very bearish picture of Bitcoin and said it was “synonymous with the Ponzi scheme”. This shows how many institutional investors still fear cryptocurrencies, but retailers have been quick to embrace the new asset class.
Bitcoin / USD
The bulls are defending the 20-day exponential moving average ($ 11,589), which is a positive sign as sentiment is still bullish. Bitcoin can now rise to the resistance level of $ 12,113.50.
The 20-day exponential moving average is gradually falling and the RSI is in positive territory, indicating that the path of least resistance is up.
If the bulls manage to push the price above the resistance zone from $ 12,113.50 to $ 12,460, the uptrend is likely to resume with the next target of $ 13,000 and then $ 14,000.
However, the cops are unlikely to surrender without a fight. They will raise the stiff resistance at $ 12,113.50 again. If BTC / USD falls out of this range, it could fall to $ 11,000 and then to $ 10,400.
ETH / USD
Ether repeatedly fell below the 20-day EMA ($ 394) for three consecutive days between August 21 and 23, but the bears failed to increase sales and pull the price back to $ 366, indicating that the cops you were piled up on the lowest levels.
Currently, the bulls are trying to push the ETH / USD pair above the resistance level of $ 415.634. If they are successful, the $ 446.479 will likely be retested. A break in this level indicates a possible resumption of the uptrend with the next target at $ 480 and then at $ 516.11.
However, if the pair falls from $ 415,634 or $ 446,479, then range action can be taken for a few days.
The 20-day exponential moving average and the RSI just above its midpoint suggest a few days of consolidation. The trend will turn negative if the bears cut the price below the critical $ 366 support.
XRP / USD
XRP is currently capped in the range between $ 0.326113 and $ 0.268478. The 20-day moving average ($ 0.285) has flattened and the RSI indicator is slightly above its midpoint, indicating a balance between supply and demand.
That balance will turn in favor of the bulls if they can push the price above $ 0.326113. Above that level, it could move to $ 0.346727 and then to $ 0.40.
However, if the pair falls from $ 0.326113 it will add a few more days to its stay within the range.
The benefit will shift in favor of the bears if XRP / USD falls below the USD 0.268478 support level. If this level breaks it will likely drop to $ 0.24.
BCH / USD
The bulls were able to defend the breakout level of $ 280, indicating a buy on dips. You will now try to drive Bitcoin Cash (BCH) into the upper resistance at $ 326.30. Bears will likely defend this level aggressively.
If the price falls from $ 326.30, the Bitcoin Cash / USD pair may remain in a limited range for a few more days.
However, if the bulls manage to push the price above $ 326.30, it can move up to $ 353. A break of this resistance could result in a $ 400 rise.