Bitcoin Bumps Up, but for How Long?

As traditional markets continue to struggle with the coronavirus crisis, cryptocurrencies are seeing an upswing in both price and volume. Now crypto traders are wondering how long this new rally will last.

Bitcoin (BTC) is up 1 percent in the past 24 hours of trading, currently changing hands at $6,224 as of 19:00 UTC. The world’s largest cryptocurrency by market capitalization may be trending below its 10-day moving average in price, but it’s still above its 50-day average, the signal of a continued upward trend.

On Coinbase, prices were as high as $6,993 on the U.S. exchange over the past 24 hours. That’s an 80 percent appreciation from its lows of $3,845 on March 12, which was hit, in part, by liquidations on BitMEX  coronavirus-related news.

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Trading since March 11 on Coinbase. Source: TradingView

“We saw buying in large sizes from some larger players in the last couple of days from $5,000 and up,” said Darius Sit, managing partner of Singapore-based trading firm QCP Capital.

Over the past 24 hours, Bitfinex traded on its spot markets more than $400 million worth of cryptocurrencies, according to the exchange. This coincided with a price spread developing and arbitrage opportunities forming on exchanges like Bitfinex and BitMEX.

Bitfinex CTO Paolo Ardoino told CoinDesk the action comes from “a combination of multiple factors [including] halving, hedging against the traditional market and an important number of fiat inflows entering crypto markets to take advantage of the recent decline.”

See also: The Puell Multiple Is Turning Bullish on Bitcoin

With the potential of government stimulus plans boosting economic activity, bitcoin has been very bullish.

So where is bitcoin’s price going? Professional stakeholders, as usual, differ on opinions and strategies.

bitcoinvolumeandprice_coindeskresearch_march20
Bitcoin volumes and price. Source: Nomics

“Conditions look set for a stellar rise with unprecedented monetary easing and fiscal stimulus along with the halving narrative. So once there was a sense of some stabilization in the spread of the virus (0 cases in China yesterday) a frenzy of buying occurred,” QCP Capital’s Sit told CoinDesk.

“In terms of the recent recovery, if the trend will continue the next resistance will be around $7,200,” said Constantine Kogan, a partner at crypto fund of funds BitBull Capital.

However, Kogan also noted…

Continue reading at COINDESK.com

 

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