- Bitcoin has risen from $5,800 to $6,500 in the past few days, but was unable to maintain this important level.
- Analysts are currently discussing whether Bitcoin could fall again to the 30-day low of $4,000.
Bitcoin rose from $5,800 to $6,590 on March 29, 2020, breaking through strong resistance along the $6,500 mark. However, BTC was not able to stabilize above this important level for the time being. At the time of writing the article, Bitcoin was down 1.61 % to a price of $6,310.51.
Experienced Bitcoin trader and Blockroots.com founder Josh Rager describes that Bitcoin is currently moving between two trend channels. If Bitcoin manages to rise above $6,700, this is a bullish sign and could take Bitcoin over $7,000. However, if Bitcoin closes below the $6,200 mark, BTC could fall back to $5,800 or even further.
Watching price range between two levels (grey boxes)
$6700+ close above higher time frames would be bullish (on lower time frames could be fake-out)
$6200 close below here could lead to more downside/ retest of $5800s and potential for print lower-low/lower-high pic.twitter.com/5nNFOcxzgL
— Josh Rager ? (@Josh_Rager) March 31, 2020
The well-known crypto trader “Tyler Coates” has shared a chart with its community that shows that Bitcoin could return below the $4,000 mark if it follows the reversal of the price movement that occurred between March 12 and March 18. However, he points out that this is not a forecast, but only a current observation.
— Tyler D. Coates (@Sawcruhteez) April 1, 2020
Bitcoin was able to close the last candle in the daily chart in March above the technically important level of $6,400. Therefore, some analysts are bullish, as BTC could continue to rise from this support in the long term. Nevertheless, prominent analyst Cred reminds his followers that just because Bitcoin closed above $6,400, this is no guarantee for a continued rise.
It is merely a good starting position on which Bitcoin can build. For him, Bitcoin must also show new strength and attract buyers on the following weekly and daily charts so that BTC can, in his opinion, rise above $7,000.
Popular crypto-currency analyst Big Cheds told his community that BTC recently lost the EMA8 (Exponential Moving Average) and the ongoing sideways trend is the next big test for the bulls. He says that Bitcoin is trapped between two trend channels at $6,600 and $6,200. Depending on the movement of the price in the next few hours, Bitcoin could start a strong downward movement if the $6,200 mark is broken.
— Big Cheds (@BigCheds) March 31, 2020
The total market capitalisation currently fluctuates between $185 billion and $167 billion and stood at $178 billion at the time of writing. There is currently a strong correlation between Bitcoin and the Altcoin market. Ethereum has also been trending sideways over the last 24 hours and stands at a price of $132.64 (- 0.15%), XRP at $0.17 (+ 0.31%), Bitcoin Cash at $217.13 (- 1.22%), Litecoin at $38.71 (- 0.59%) and IOTA at $0.14 (- 0.52%).
Can the flood of money boost Bitcoin?
Due to the ongoing corona crisis, the economic performance of many countries worldwide continues to decline. The stock and crypto markets are also feeling the effects of this. In order to stimulate the markets, the Federal Reserve (Central Bank of America) has announced an unprecedented aid package of over $6 trillion.
This is intended to provide helicopter money to all citizens of the country, thus increasing the purchasing power of the population in the short term. However, critics note that while these measures will stimulate the markets in the short term, they will have far-reaching long-term effects due to rising inflation.
The Dow Jones has risen within a few days from just under 20,000 points to the current 21,900 points, but analysts fear a downward trend soon, which will continue for a long time. It remains to be seen whether Bitcoin can live up to its reputation as digital gold and act independently of the traditional financial markets.