- Bitcoin rose to USD 6,000 within the last 6 hours after a pump, but fell sharply again by the time of writing.
- The support zone along the USD 5,000 mark is considered an important level that Bitcoin must maintain in order not to go into free fall.
Bitcoin briefly rose to USD 6,000 at 23.00 (UTC) due to a pump. However, this price development was not sustainable, so that BTC has fallen sharply and is trying to stabilize at USD 5,000 at the time of writing. Thus, the volatility in the crypto market remains high.
Shortly before the pump, the Federal Reserve (Central Bank of America) announced that it would cut the key interest rate to 0 % and pump more than USD 700 billion into the economy with a new programme. The money will be used to buy securities and thus counteract the current market turbulence. The coronavirus thus continues to cause a tense mood on the global financial markets. For the first time in a long time, Bitcoin threatens to fall below the important 200-week moving average.
Experienced Bitcoin trader Josh Rager describes that Bitcoin is not showing good signals after pumping to USD 5,900. He explains that all fundamentals are out of action in the currently insanely panicky market, which is why he urges his followers to be careful and especially now in trading not to take a big risk.
$BTC – well I'm up way past my bedtime, but at the same time, managed to see this dump and 1x short to stabilize my USD for now
Not looking great with NYC going on social lock-down – you have to throw BTC fundamentals out the window and protect yourself
Trade safe pic.twitter.com/NkAiPwQQ8e
— Josh Rager 📈 (@Josh_Rager) March 16, 2020
Some analysts see a strong correlation between the current price development of Bitcoin and the stock market in the last few days. The popular crypto-analyst Big Chonis states on Twitter that the community is watching the stock market because Bitcoin is currently following its price development and is not acting detached from the global financial market.
As Crypto News Flash already reported, Bitcoin has not yet been able to live up to its reputation as digital gold. Currently bulls and bears are fighting each other with an uncertain outcome.
— Big Chonis Trading (@BigChonis) March 15, 2020
Bitcoin trader DonAlt states that in his opinion Bitcoin could show a sudden movement of USD 2,000 at any time, both up and down. He urges his followers to be vigilant and secure their capital:
BTC update: Re-hedged my spot, I’m flat again. Made almost 20% profit on the position, won’t complain. This could both pump $2000 or dump $2000 at this point and I’m not willing to wait in position to see which it’ll be. I’ll look for entries around the monthly close instead.
Altcoins also show high volatility
Ethereum, XRP and IOTA as well as the entire Altcoin market follow Bitcoin and also fluctuate strongly in price. ETH falls to a price of $112.88, XRP to $0.14, LTC to $33.38 and IOTA to $0.11. It remains to be seen if and when the market can initiate a trend reversal.
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