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The US Congress finally agreed to a $2 Trillion stimulus package.
Bitcoin (BTC) reacted positively to the news and traded briefly at $6,960, Binance rate.
However, the $6,900 resistance area and the CME Bitcoin futures expiry this week, might delay BTC from reclaiming $7,000 and turning it into support.
The two major parties in the United States Congress have finally agreed regarding the workings of a stimulus package that will attempt to offset the economic effects of the Coronavirus. The stimulus will be worth $2 Trillion and its chief goal will be providing relief for businesses and Americans in the largest bailout ever in the country’s history. News of the agreement excited both the stock markets and Bitcoin (BTC) as well. However, the King of Crypto is having a difficult time reclaiming $7,000.
Bitcoin Unable to Break the $6,900 Resistance Zone
News of a possible bailout started to hit the news outlets on Monday, March 23rd. Since then, Bitcoin has managed to rally from $5,800 to a recent high of $6,960, Binance rate. When we explore the BTC/USDT 6-hour chart, we find that BTC is having a hard time overcoming a strong resistance zone between $6,900 and $7,000. This can be seen through the volume profile (far right) as well as the 100 Moving average (yellow) which is above the current value of the coin. Also to note is that the 6-hour MACD is about to cross above the baseline indicating a possible drop in value.
6-Hour BTC/USDT Chart courtesy of Tradingview.comCME Bitcoin Futures Expire this Friday
Additionally, the Bitcoin CME futures expire this Friday, March 27th. Many crypto traders are aware that the expiry of these contracts usually results in Bitcoin losing value a few hours or days before the last Friday of each month. The CME group further explains that trading of these contracts ends at 4 pm, London time.
Trading terminates at 4:00 p.m. London time on the last Friday of the contract month. If that day is not a business day in both the U.K. and the US, trading terminates on the preceding day that is a business day for both the U.K. and the U.S
Summing it Up
In summary, the US Congress has agreed on a $2 Trillion stimulus package that has resulted in both the stock and crypto markets regaining some of the losses experienced earlier this month. However, BTC still faces two hurdles before regaining $7,000: the tough $6,900 resistance zone as well as the expiry of the CME Bitcoin futures this Friday.
(Feature image courtesy of Jeremy Chen on Unsplash.)
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.