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An indicator that accurately forecast Bitcoins rise to $10,000 in January is once again suggesting a rally may be on the horizon.

The DVAN buying and selling pressure gauge has identified a positive divergence and has flipped bullish, according to analysts at Bloomberg. The indicator assesses the underlying momentum of an asset in order to identify buying and selling pressure.

Bloomberg Intelligence analyst Mike McGlone says he expects BTC to stabilize this year and pass a key test for Bitcoins transition toward a quasi-currency like gold.

Meanwhile, the co-founder of Blockroots, Josh Rager, says BTC will need to hold onto its current line of support at around $6,700 to prevent another move to the downside.

BTC nice little pullback to support. Price needs to hold this area, with a close below the grey box.

In my opinion, price could be heading back down to low $6,000s. As long as the price holds here, not worried at the moment. Stop talking $5,000 and $8,000 pay attention to $6600s and $7,000 first.

Meanwhile, a pseudonymous analyst and technical trader who goes by the name George tells his 19,700 followers on Twitter that Ethereum (ETH) is battling resistance at the $140 mark.

If it closes above that line, he believes ETH could begin an explosive move to the upside. If not, he expects ETH to fall back to around $135.

ETH looks ready to explode Dump from here and I got my eyes on mid range.

As for XRP, crypto analyst and trader Michal van de Poppe says hes looking to see if it can overcome a longstanding line of resistance against BTC.

If XRP can push past its current price of about 18 cents, he says the crypto asset could rally to 21 cents.

Would be interesting to see whether XRP can flip this level back for support. Might support further continuation towards 3100 satoshis.

Featured Image: Shutterstock/Milkovasa

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Pressure Test That Signaled Bitcoin (BTC) Bull Run Flashing As Ethereum and XRP Hit Crucial Lines of Resistance - The Daily Hodl

Yuri Molchan

As Bitcoin is now about to retest the $7,000 level after hitting it on Thursday, traders are expecting BTC to break through and hit $7,400-$7,600

On Thursday, April 2, Bitcoin hit the $7,082 price mark giving the markethope for a bullish continuation. However, BTC plunged back to $6,779 later on.

As BTC has recovered to $6,914 at the time of writing, traders are making bullish bets on BTC going over$7,600 and assuming it could hit $8,900 after that.

Trader George tweetedthat hourly and four-hour candles closed strong and now he is targetingthe $7,600 level.

However, later on, he tweeted that the $6,800 is the key for now. Unless BTC falls below that, the price could retest the yearly open level in the $7,200 area.

If BTC breaks below the $6,600 zone, bulls will be in trouble, as per George.

Nik Patel, a trader andauthor of An Altcoin Traders Handbook', says heshorted BTC when it reached $6,960. Now,he expects the digital gold to decline to 5,820.

Shorted $BTC at 6960, stop at 7410 and looking for 5820. Right now this looks like a retest of double-top resistance at 6990 after a swing-failure of those highs and rejection at yearly open.

Trader and technical analyst Nicola Duke Crown expects Bitcoin to break above the $7,175 mark today and then head towards much higher levels - $8,500-$8,900.

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Bitcoin (BTC) Price Targets $7,600 with Chance to Hit $8,900 Later - U.Today

Bitcoin and other cryptocurrencies are often looked at as investment instruments by various people while a lot of them frequently use it for daily transactions too. However, with the COVID-19 crisis looming on, the usual spending of Bitcoin has reduced drastically. The darknet and Bitcoin have often been in the news together at such times. However, to everyones surprise, this time the darknet activities are very low.

Darknet users often deal in Bitcoin to complete their transactions for buying illegal goods and drugs and arent bothered with the market volatility at all. In the past, the number of darknet activities used to remain the same despite market volatility. However, this time the scenario has changed.

While the fact that darknet activities have been limited is surprising, the reasons behind this are quite obvious. Someone who has bought Bitcoin for $8000 or $9000 wont be cashing it out at $6500 range, unless very necessary. Other reasons that can be cited is that the COVID-19 pandemic has perhaps got people thinking more about their health rather than buying illegal drugs.

Also, a lot of European and Asian countries are under complete lockdown due to the pandemic, which has affected the business overall. One more reason that is coming out on the top is that the pandemic has given way to a lot of scams and fraudulent activities, due to which agencies like the FBI, Interpol, and others are more active than ever.

Darknet and bitcoin transactions have been clearly lowered due to the pandemic. However, if we look at some other trends affected by the pandemic, the normal market and fiat transactions have also taken some damage. People are only buying essential goods for themselves. In countries like India, where there is a total lockdown, online shopping has also taken a huge hit after temporarily suspending its operations in most parts of the country.

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Darknet and Bitcoin: Ominous trends affected by COVID-19? - Cryptopolitan

Digital currencies are a very mixed bag, and according to Meltem Demirors, the chief strategy officer at CoinShares, a digital dollar is not what crypto enthusiasts think it is. Unlike Bitcoin, Ethereum and other decentralized cryptocurrencies, a digital dollar would be effectively controlled by the government and would require users to connect their bank accounts to a platform that is owned and operated by the central bank.

By linking the central bank to users through a digital dollar, offering the convenience of a cashless society that can process and settle transactions instantaneously, Demirors argues in a tweetstorm posted on Thursday that the government would have a direct pipeline to personal and private financial data.

To all the crypto people obsessing over the recent news of a digital dollar its terrifying and is basically the opposite of what crypto is all about (systemic hedge, self-sovereign, etc) what theyre talking about is similar to what Sweden has done

Only 13% of people in Sweden use cash on a weekly basis. By contrast, 70% of Americans use cash on a weekly basis. Why the difference? Sweden has great connectivity infrastructure (broadband), small population (under 10M), and a legacy of adopting new technology.

Most Swedes are using a payment app called Swish to pay for things. its basically like Venmo, and allows free and instant transfers. All you need is a phone number. But you still need a bank account to connect it to. And to have a bank account, you need an identity.

Anyone who wants to be part of the digital economy has to:

a. link their national ID to their bank account b. link their bank account to their app c. link their app to their mobile number

So in those three steps, youve basically given the state access to your finances.

Despite being able to leverage technology to power fast transactions, Demirors argues that government-backed platforms with overarching access are trending more 1984 than brave new world.

Now who owns Swish? Why, a consortium of all of the Swedish banks. And what powers the back end of Swish? Why, a citizen identification solution called BankID and who owns BankID? Why, a consortium of all of the Swedish banks.

Last month, a proposal for a digital dollar made its way into an early draft of a relief bill introduced by House Democrats to send emergency funds swiftly to US residents via a digital wallet, mitigating the economic meltdown and soaring unemployment due to the coronavirus outbreak.

Although the measure was scrapped, the nomenclature was close enough to the verbiage used in Bitcoin and crypto circles where proponents are pushing for mainstream adoption of digital wallets and digital currencies that can operate without middlemen.

But Demirors clarifies that they are entirely different instruments with different objectives.

The digital dollar that is being touted has nothing to do with blockchains, cryptocurrencies, or anything remotely related. Its about linking your bank account directly to a federal agency so they can move 0s and 1s in their database.

And when you do that, you have basically completed the loop for the government, eliminating the need to go through intermediaries to get your data by tying what people need (economic relief) to what the government wants (access to your bank account). You kill two birds with one stone.

So yeah, thats kind of the opposite. We are entering an era of unprecedented government surveillance, all implemented in the name of emergency relief.

Featured Image: Shutterstock/Akira Kaelyn

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CoinShares Strategist Meltem Demirors Issues Warning About Digital Dollar Its Everything Bitcoin Is Not - The Daily Hodl

Bitcoin rallied over the last few days as U.S. jobless claims hit a record. (Photo by INA FASSBENDER ... [+] / AFP) (Photo by INA FASSBENDER/AFP via Getty Images)

Bitcoin prices rallied roughly 17% in less than 24 hours, as sustained concerns about economic turmoil helped push investors toward safe-haven assets.

The worlds most prominent digital currency rose to as much as $7,212.73 earlier today, according to CoinDesk data.

At this point, the cryptocurrency had climbed 17.1% since yesterday afternoon, CoinDesk figures show.

When explaining this price rally, analysts mostly pointed to investors desire for safe-haven assets.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Jobless Claims

Americans filed over 6.6 million applications for unemployment insurance during the week ending March 28th, according to figures provided by the U.S. Department of Labor (DOL).

In addition, more than 3.3 million Americans filed claims for unemployment the week before, additional DOL data reveals.

These applications came flooding in as businesses across the nation shuttered their doors amid continued concerns about the novel coronavirus.

The newly updated jobless claims report in the U.S. helped fuel a sharp Bitcoin price increase, said John Iadeluca, founder & CEO of multi-strategy fundBanz Capital.

However, additionally, yesterday marked the official start of the second quarter, a common tax incentive for new or added capital in the alternative investments market, he stated.

The release of the jobless claims report also came alongside the report of a near 50% increase in citizens receiving benefits, prompting a migration of investment to what could possibly be deemed safe-haven assets due to the data suggesting increasing coronavirus economic fears. This can be further supported by the significant rise in gold & commodity futures in the last 48 hours.

Marouane Garcon, managing director of crypto-to-crypto derivatives platformAmulet, also weighed in.

I think that people are seeking cover from what they think is going to happen in the traditional markets, he stated.

The headlines are getting scarier by the day so people are trying to figure out where can they go for protection. I dont know if Bitcoin is the safest place, but many people are willing to try.

Tim Enneking,managing director ofDigital Capital Management, offered a different perspective on the situation.

QE1, 2, 3 and infinity took place over years and coincided with the launch of Bitcoin, he noted.

However, this latest round of QE will be trillions of dollars over a period of months, said Enneking.

That has to devalue a currency except currency value is relative (exchange rates) and if everyone is debasing, the devaluation will not be felt. Except versus something like BTC, which has a finite supply.

So, I would explain the current move up and I predict it will continue by attributing it to the realization that BTC will (finally) be a safe haven not from temporary economic downturns (it failed that test miserably), but from currency printing presses.

Technical Analysis

Some market observers took a different tack, attributing bitcoins recent gains to technical factors.

Yesterday, on April 1, the price bounced off $6,157 and continued that momentum today to reach $7,200 after which profit-taking brought it below $7,000 - the resistance we previously identified, said Joe DiPasquale, CEO of cryptocurrency hedge fund managerBitBull Capital.

Denis Vinokourov, head of research for London-based digital asset firmBequant, also commented, stating that todays surge higher was exacerbated by stops being tripped on the break of the $6,900 to $7,000 range, which sent the price soaring to the $7.3k zone.

Bitcoin Resilient, Says Analyst

Im impressed by how resilient Bitcoin has been of late, said Evan Kuo, CEO and cofounder of digital currency firmAmpleforth.

It may be the case that enough initial panic selling for Bitcoin has taken place, that folks are momentarily willing to be opportunistic about the asset, he added.

Bitcoin is less affected than equities by uncertainties surrounding what constitutes a reasonable valuation with respect to p/e ratios, gdp forecasts, employment, etc., noted Kuo.

All of this supports the case for Bitcoin being an interesting asset to watch after the fear subsides, particularly if were faced with a slow macro-recovery.

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.

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Bitcoin Climbs More Than 15% As Investors Flock To Safety - Forbes