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Bitcoin is on the rise Thursday morning (UTC), showing resilience in the face of a global dash for dollars seen in the foreign exchange markets. <\/p>\n
At time of writing, the cryptocurrency is trading near $5,670, representing a 9.4 percent gain on a 24-hour basis. Bitcoin found bids near $5,260 during the Asian trading hours and has been climbing since, according to CoinDesk's Bitcoin Price Index. <\/p>\n
While bitcoin is flashing green against the U.S. dollar, most fiat currencies are currently trading in the red. For example, the British pound-to-dollar exchange rate is hovering near 1.1555, the lowest level since 1980. The currency pair has dropped by nearly 8 percent this week. <\/p>\n
The Australian dollar fell to a 20-year low of 55 U.S. cents early on Thursday and is currently reporting a 0.6 percent drop on the day. <\/p>\n
The greenback has gained in the past six trading days against all major currencies, as noted by macro analyst Holger Zschaepitz.<\/p>\n
The surge indicates many investors are selling everything, even safe havens like Japan's yen and Swiss francs, to move their money into dollars over fears of a coronavirus-led recession in the global economy. If cash is king, then dollar cash is currently being world president,\" according to ING's head of global markets. <\/p>\n
Bitcoin, however, isn't bowing down to the new cash overlord, and could see bigger gains if the U.S, equity markets put in a good performance in line with rising European stocks. At press time, the Euro Stoxx 50 the eurozone's benchmark index has added 1.3 percent to its value. <\/p>\n
A risk reset on Wall Street cannot be ruled out, as central banks from Australia to Canada have launched easing programs to inject massive amounts of liquidity into the system. <\/p>\n
Bitcoin's technical charts, too, are suggesting scope for a stronger recovery rally. <\/p>\n
Daily chart <\/p>\n
Bitcoin defended the psychological support of $5,000 on Wednesday and ended up producing a small hammer candle, validating seller exhaustion signaled on Monday.<\/p>\n
A hammer candle occurs when sellers fail to keep prices at the lowest point of the day and is widely considered an early sign of a trend reversal. <\/p>\n
The MACD histogram is printing higher lows below the zero line, indicating a drop in bearish momentum.<\/p>\n
Hourly chart <\/p>\n
Bitcoin produced a green marubozu candle in the 60 minutes to 10:00 UTC, which comprises a big body and small or no wicks. The bullish indicator shows buyers were in control from the session's open to its close.<\/p>\n
The odds appear stacked in favor of a rise to the top of the ascending triangle at $5,926. A high-volume break above that level could cause more bargain hunters to join the market, producing a stronger rise to the next resistance at $6,425 (December low).<\/p>\n
Conversely, a triangle breakdown would open the doors for a re-test of the March 16 low of $4,446. <\/p>\n
Disclosure:The author holds no cryptocurrency at the time of writing. <\/p>\n
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.<\/p>\n
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