- The price of Bitcoin has stabilized above the $6,000 mark and is showing short-term bullish signals.
- The financial markets seem to be taking a break from the financial injections announced by central banks worldwide.
The price of Bitcoin was able to stay above the $6,000 mark for the last 7 days, until March 29, 2020, when Bitcoin briefly fell to $5,900, but managed to rebound to $6,200 within a few hours. At the time publication, Bitcoin has grown by 3.29% in the last 24 hours and is now trading at $6,418.58.
Analysts are currently divided on whether Bitcoin will see the $5,000 mark soon, or whether the recent rise is bullish signals and a further bullish move will follow. Experienced Bitcoin trader Josh Rager describes on Twitter that the S&P futures and gold have shown a mini-pump, similar to Bitcoin, and that chart trends continue to show a high correlation. So far Bitcoin has not really been able to live up to its reputation as “digital gold”, which is why it is taking advantage of the opportunity to shorten BTC.
During Bitcoin’s rise from $5,800 to $6,400 to date, BitMEX funding rate for Bitcoin for the Bitcoin (XBT) contract has increased by more than 990 %, according to data collected by Microsoft’s AI/cloud specialist Joe McCann. In his opinion, the bulls are being artificially driven up, creating selling pressure that could lead to a drop in BTC prices in the near future.
In contrast, the prominent crypto trader Flood sees good chances that Bitcoin will soon test the $8,000 mark. He has been shorting Bitcoin so far and is now hoping for a rising price.
We shorted, now we long to 8k pic.twitter.com/zmYQm2psQZ
— Flood [BitMEX] (@ThinkingUSD) March 28, 2020
Crypto Analyst Teddy sees a great chance for Bitcoin to continue to rise if Bitcoin can close the daily chart above the $6,500 mark. BTC would then have taken further strong resistance along the $6,500 mark and could target the $7,700 mark in the near future. Teddy describes that Bitcoin has opted for the “green way” (bullish variant) for the time being.
— Teddy (@TeddyCleps) March 30, 2020
Central banks pump trillions of dollars into the market
As Crypto News Flash already reported, central banks around the world announced that they would pump vast amounts of money into the market to artificially stimulate the economy. Both the Federal Reserve (Central Bank of America) and the European Central Bank announced purchase programs of $700 billion and 700 billion Euro.
Donald Trump recently decided on an even bigger aid package, with more than $6 trillion to be pumped into the market. By introducing a digital dollar, it would be possible to give every citizen a certain amount of “helicopter money” and thus increase the purchasing power of citizens in the short term. This measure has already been observed in Hong Kong, which has been weakened by sanctions, where each citizen received “pocket money” of more than $1,300.
Critics do not see these steps taken as being very sustainable, as all these measures lead to massive inflation. As a result, it remains to be seen whether the market can benefit in the short term, but also in the long term.