Why Bitcoin Needs to Clear This Crucial Level

Bitcoin has performed surprisingly well in recent weeks, rising to $ 7,100 (at Bitstamp) a few days ago, and has risen from the low of $ 3,800 during the capitulation of March 12-13. Although the bull trend is exhausted, BTC is still trading at $ 6,600 and consolidating in the mid-$ 6,000 to determine which direction to take next.

Related Reading: House Democrats Suggest That “Digital Dollar” Is Moving For Bitcoin: Here's Why

Despite this price movement, the cryptocurrency remains below a number of key resistance levels, as noted Bitcoin trader Filb Filb highlighted, who called BTC's price action for the full fourth quarter and January.

Bitcoin has to exceed $ 8,000

In a recent TradingView analysis Cryptocurrency analyst Filb Filb drew attention to the importance of $ 8,000, a price point he said was the “worst resistance cluster since the 2018 bear market”. In fact, he found that the following technical levels are currently $ 8,000 (subject to change in the coming weeks):

  • The 200-day moving average.
  • The 100-day moving average.
  • The 50-day moving average.
  • The moving 20-month average.
  • Bitcoin & # 39; s 61.8% Fibonacci retracement of the February high to a low of $ 3,800.
  • And the annual pivot level.

Can it clear up this level?

The relevant question remains: does Bitcoin have the potential to release $ 8,000?

Unfortunately, analysts disagree on this question.

According to previous NewsBTC reports, Bitcoin is in the process of following the basic scheme for reversing the bumps found in Thomas Bulkowskis Encyclopedia of diagram patterns.

BTC is currently in the fourth phase of the BARR floor should followed by an increase after the first phase, which will be around $ 9,000 in the next week or two, meaning that the entire surrender could soon be reversed.

The thing is, the overhead risk remains that traditional markets will continue to fall, which could push Bitcoin. How explained by Chris Burnisike, partner at Placeholder Capital:

"If we experience another" sell everything "moment in the world markets like in the week of March 9, Bitcoin and crypto will not be spared."

This theory was confirmed by trader Cantering Clark, who noted that "the moment Bitcoin is back in bed will be followed by Bitcoin" and explained that reality is some of the "largest and most basic industries" in the world that Adversely affected by the outbreak of the corona virus, it is unlikely that crypto will be spared.

The analyst also said that there is no telling which crypto companies, including Bitcoin exchanges, will be affected by the global aftermath of a recessive event, further increasing the risk of a BTC breakdown.

While the stock market had two strong green days on Tuesday and Wednesday (with Tuesday setting a multi-year record in terms of Dow Jones' daily percentage earnings), COVID-19 continued to spread worldwide with increasing speed. Countries have announced extreme unemployment, which apparently indicates that it may take a while for the economy to get back on its feet without help.

Featured Image from Shutterstock

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