3 Reasons Why Bitcoin Price is Bullish Right Now

CONGRESS DISCUSS DIGITAL DOLLAR BY FED TO FIGHT CRISIS

House Democrats proposed two bills that revolve around the creation of a digital dollar and digital wallets, so that the Federal Reserve (Fed) could transfer digital cash directly to individuals and businesses. The move is meant to support the economy amid the COVID-19 pandemic, as the US is only after China and Italy by the number of confirmed cases.

The draft bills are called “Take Responsibility for Workers and Families Act” and the “Financial Protections and Assistance for America’s Consumers, States, Businesses, and Vulnerable Populations Act.” According to authors of the legislation, the Fed would use a digital USD and digital wallets to transfer money to “qualified individuals,” which amount $1,000 for minors and $2,000 for adults.

Both draft documents use the same definition for the digital dollar:

The term ‘digital dollar’ shall mean a balance expressed as a dollar value consisting of digital ledger entries that are recorded as liabilities in the accounts of any Federal Reserve bank; or an electronic unit of value, redeemable by an eligible financial institution (as determined by the Board of Governors of the Federal Reserve System).

The law might be supported by Congress, and the Fed wouldn’t mind since it previously admitted that it was thinking about issuing a digital currency.

FED PUMPING UNLIMITED CASH; STOCKS, BITCOIN REACT

Yesterday, the Fed surprised the market when it announced its unlimited support for the economy. Besides buying more Treasuries and mortgage-backed securities, the central bank would also buy corporate bonds and related exchange-traded funds (ETFs).

Johnny Fine, Goldman Sachs’ head of Investment Grade Bonds told CNBC:

This is unprecedented action by the Fed.

Todd Rosenbluth@ToddCFRA

Wow. The Fed will be buying investment grade corp bond like presumably . These funds have diversification and liquidity but demand for underlying bonds has weakened. This is a whole new world. https://www.federalreserve.gov/newsevents/pressreleases/monetary20200323b.htm 

Federal Reserve announces extensive new measures to support the economy

The Federal Reserve is committed to using its full range of tools to support households, businesses, and the U.S. economy overall in this challenging time. The

federalreserve.gov

See Todd Rosenbluth’s other Tweets

The Fed will buy corporate bonds under a program called the Secondary Market Corporate Credit Facility.

The Fed’s unlimited quantitative easing boosted stock markets, which encouraged many institutional investors to look through other assets, including Bitcoin.

CHINA HAS ALMOST BEATEN COVID; POTENTIAL CURE TESTED WORLDWIDE

China has reported zero local cases for several days in a row, though the number of imported cases increases. Nevertheless, businesses in many regions are reviving. However, many are skeptical of China’s reporting, and there are concerns that the imported cases might spark another wave.

Another sign of hope is…

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Bitcoin, Gold Spike as Fed Unveils Unlimited Coronavirus Stimulus Package

Bitcoin’s (BTC) price shot up along with gold and stock futures after the U.S. Federal Reserve announced a quantitative easing package with no upper limit to support the economy amid the coronavirus crisis.

Immediately after the 12:00 UTC announcement, bitcoin jumped from $5,860 to $6,628 in an hour, according to CoinDesk’s Bitcoin Price Index. Gold, a classic safe-haven asset, rose from $1,494 to $1,524 over the same time frame.

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The Fed’s announcment indicates it is taking stronger actions, including open-ended asset purchases, to support the flow of credit to households and businesses.

“The Federal Reserve will continue to purchase Treasury securities and agency mortgage-backed securities in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions,” the central bank said.

Essentially, the Fed now stands ready to expand its bond purchases as required. The central bank’s balance sheet hit a record $4.7 trillion last week.

With the Fed going all-in to support the economy, sentiment on Wall Street turned positive alongside the uptick in bitcoin and gold. Futures tied to the Dow Jones Industrial Average, which were down nearly 900 points during the European hours, are now reporting a 400-point gain.

The foreign exchange market reacted to the Fed’s new QE effort by offering the greenback. The U.S. dollar index, which tracks the value of the greenback against majors, fell from 102.80 to 101.70 following the central bank’s announcement.

Bitcoin’s move higher along with gold is likely to revive the safe-haven narrative but it will be interesting to see if the positive correlation persists.

Both gold and bitcoin have fallen sharply over the last two weeks, reviving memories of the 2008 crash when the yellow metal had declined by…

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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.

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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…

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Bitcoin Price Surges Amid Global Market Chaos

Cryptocurrency markets have seen a huge resurgence, causing the price of bitcoin to shoot up by more than 20 per cent in less than 24 hours.

The gains follow one of the worst crashes in the digital currency’s history, which saw it lose more than half of its value in a series of panicked sell-offs last week. The crash mirrored the fortunes of traditional markets and came amid global economic turmoil caused by the Covid-19 coronavirus pandemic.

Bitcoin’s recovery saw it return above $6,000 on Thursday, having briefly traded as low as $4,000 a few days earlier. Other major cryptocurrencies, including ether, XRP and bitcoin cash, also saw significant price rises as investors returned capital into digital assets.

“Bitcoin’s crash was a knock-on effect of the stock market collapse, as panicked investors sold any assets they had for cash, so they could pay off urgent debts to their broker,” cryptocurrency expert and author Glen Goodman told The Independent.

The coronavirus outbreak, which has seen more than 230,000 confirmed cases and close to 10,000 deaths around the world, has caused chaos across global stock markets and seen major currencies like the pound fall to their lowest levels in decades.

There has not been an economic downturn of this magnitude since the 2008 financial crisis and some central banks are already considering similarly drastic measures in order to prevent complete collapse.

The Reserve Bank of Australia and the European Central Bank are reportedly considering emergency monetary policies, including quantitative easing. This would see the banks artificially increase the money supply by essentially printing new money.

The finite supply of bitcoin – no more than 21 million will ever exist – has led some investors to consider it a so-called safe-haven asset, similar to gold.

“For the longer term, investors are now starting to worry about central banks cranking up the money printing machines,” Mr Goodman said. ”This could send investors to assets that can’t be endlessly printed, like gold and bitcoin.”

Other analysts warned that the full impact the coronavirus outbreak is yet to be realised for both tradition markets and cryptocurrencies.

“It is possible we could see bitcoin fall further, back down to…

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5 Best Cryptocurrencies Besides Bitcoin To Watch Once Coronavirus Crisis Is Over

The novel coronavirus took the world by a storm. Starting in China, the virus has now spread throughout the globe, with thousands of cases being reported in Europe, Asia, and even the US.

This brought a catastrophe on the traditional financial and stock markets, as major global indexes crashed in a way that was more vicious and quicker than the recession of 2008.

Cryptocurrencies, unfortunately, weren’t left out, and they were no exception. In less than a month, the market lost half of its capitalization, wiping $150 billion off existence. In the past 30 days, Bitcoin lost 50% of its dollar value. The thing that caught everyone’s attention was how sudden the crash was. In just one day, Bitcoin charted a 40% loss.

Needless to say, Bitcoin wasn’t the only cryptocurrency that lost a significant chunk of its value. Altcoins followed. Ethereum, Tezos, Chainlink, Litecoin, Dash, Binance Coin – all of these lost half or more of their price.

However, what some see as a flat-out crisis, can also create opportunities. It’s true that the prices now, compared to just one month ago, are severely discounted. With Bitcoin’s halving just around the corner, it’s important to note that once the coronavirus crisis is over, the market could stage an impressive recovery. And if that happens, there are certain altcoins that might be interesting to watch.

DASH

Dash reached its all-time high value back in December 2018 when it peaked at $158. Like all other altcoins, however, it went through a prolonged bear market in 2019 before starting its recovery. In 2020, DASH reached a yearly high of around $133 before the recent market sell-off.

Since its yearly high in February 2020, Dash lost more than 50% of its value, as it currently trades at around $45. The sudden and quick drop from its recent highs means that there is plenty of room for growth.

The cryptocurrency might be one of the most interesting to watch because it is privacy-oriented. The coronavirus spread brought some severe concerns in this regard. As CryptoPotato reported, some countries are already tracking their citizens’ mobile phones to monitor the movement of the coronavirus. While this might be seen as an appropriate step in times of crisis, it also raises some very serious privacy concerns. It’s a very sensitive matter, and people might want to be in complete control of their privacy, including when it comes to financial transactions. It is then altcoins such as DASH that could see a serious boost.

Binance Coin (BNB)

Binance has managed to establish itself as the most trusted cryptocurrency exchange. Not only this, but it has also proven that it’s a stellar company with an appropriate and well-devised corporate structure.

Going further, Binance Futures sees a tremendous and continuous increase in its traded volumes, and it’s on its way to leading the cryptocurrency derivatives trading market as well. As its native cryptocurrency, Binance Coin is likely to be among those with a very bright long-term future.

From a technical perspective, BNB is acting relatively stable against Bitcoin. It decreased sharply during last week’s major sell-off, but it has managed to recover, and it’s performing consistently around the 0.002 BTC mark. This might provide a stable foundation for another leg up, once the coronavirus crisis passes.

BNB’s all-time high was in June 2019 when it reached about $38. In 2020, it peaked at around $26, but the recent crash brought its price below $10.

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BNB/USDT. Source: TradingView

WazirX (WRX)

WRX is the native cryptocurrency of the WazirX exchange. They had an IEO on Binance Launchpad back in February, and it was the first project in a while that brought notable 600% ROI to its investors.

It’s important to note that WazirX is touted as India’s most trusted Bitcoin exchange. This is one of the largest and most populated countries in the world. Most recently, the country’s Supreme Court lifted the ban on cryptocurrencies, and this could have a huge impact on Indian-based projects such as WRX.

WRX reached its ATH on March 7 this year, trading at $0.21. It also crashed last week, losing about 50% of its value as it currently trades at around $0.09. However, it’s worth noting that its price has been performing stable during the last few days, providing merits for a serious growth on the way up.

Just today, Binance and WazirX announced the setup of a new $50 million fund to help the further adoption of cryptocurrencies in India. Kraken, which is also one of the well-known exchanges, also plans to invest in the country following the removal of the ban.

Tezos (XTZ)

Tezos has been the best performing altcoin in 2020 until the sudden crash. To many investors, the quick crash is likely to be seen as a rare opportunity to buy XTZ at severely discounted prices. XTZ surged to slightly less than $4 about one month ago after starting the year at around $1.3.

The recent drop brought its price back to where it started, as XTZ currently trades at $1.4. Yet, it managed to keep its position as the 10th largest cryptocurrency, and it has its fundamentals in place.

Tezos activated Carthage this month – its third protocol upgrade. It aims to increase the user’s gas limits. This should allow new users to execute an increased number of smart contracts, expanding the network’s capabilities even further. Once the coronavirus crisis goes away, XTZ is likely to start marching forward with full steam.

On another note, the protocol of Tezos is governed in a way where those who stake XTZ get a proportionate vote and a reward. This provides additional incentives for people to hold XTZ and as such, certain stability that can help on the way up.

Ethereum (ETH)

Needless to say, Ethereum is the second-largest cryptocurrency for years, and this is for a reason. This is the largest decentralized network for the creation of smart contracts and decentralized applications (DApps). It remains king in terms of active DApps, even though the competition is growing rapidly.

Ethereum is also expected to see a significant update this year – Ethereum 2.0. This will see the network transition from its current Proof-of-Work (PoW) consensus algorithm to Proof-of-Stake (PoS), which should enhance its capabilities and performance.

ETH didn’t go untouched by the recent crash. After reaching an all-time high of around $1,400 back in December 2018, in 2020, it peaked at slightly less than $300. At the time of this writing, ETH is trading at $115, which shows that there is a lot of room for growth.

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ETH/USDT. Source: TradingView

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Bitcoin Is Now Undervalued, Suggests This Price Metric

A key metric suggests bitcoin (BTC) is now trading at a relatively discounted price, having dropped by 60 percent in the last three weeks.

Bitcoin’s market value to realized value (MVRV) Z-score fell below zero on Friday and stood at -0.18 as of Monday, according to crypto analytics firm Glassnode. The metric is used to to identify periods where the cryptocurrency is under- or overvalued

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The Z-score has turned negative for the first time in 12 months, suggesting the cryptocurrency is now undervalued.

Bitcoin topped out at $10,500 in mid-February and fell to a 12-month low of $3,867 on March 13, according to CoinDesk’s Bitcoin Price Index.

The cryptocurrency suffered a staggering 39 percent drop Thursday as the coronavirus-led sell-off in the global stock markets triggered margin calls and forced investors to liquidate their positions in bitcoin and other markets including gold and U.S. Treasurys.

Calculating MVRV Z-score

Bitcoin’s market value refers to the total dollar value of the supply in circulation, as calculated by the daily average price across major exchanges.

Meanwhile, the realized value approximates the value paid for all coins in existence by adding the market value of coins at the time they last moved on the blockchain.

The latter is closer to fair value as it adjusts for lost coins and those being held for the long term (so-called HODLing). As such, the MVRV Z-score essentially represents the distance or deviation from the realized value.

Bottoming out?

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Historically, a below-zero MVRV Z-score (green area) has marked market bottoms, while a reading above 7 has marked tops.

For example, bitcoin fell below $6,000 on Nov. 14, signaling an extension of the sell-off from the record high of $20,000 reached in December 2017. It had dropped to $3,400 by Nov. 25.

The Z-score also turned negative in the second half of November and declined to -0.51 by mid-December. The sell-off ran out of steam near $3,100 in December and, after some consolidation, broke into a bull market in April.

Essentially, the ebbing of downside momentum was reflected in the Z-score’s negative turn.

Going back further, the 2014 bear market, which began at highs above $1,000 at the end of 2013, ran out of steam near $150 in January 2015 with the Z-score falling to -0.50. Again, after consolidating for some months, the cryptocurrency broke into a bull market in November 2015.

So if history is a guide, the current MVRV Z-score of -0.18 suggests the cryptocurrency could be trading near a bottom.

At press time, bitcoin is trading in the green near $5,335, representing a near 18 percent gain over 24 hours.

Equity futures rebound

The recovery may be associated with the positive action in the U.S. stock futures and the Asian and European equity markets. Notably, futures on the S&P 500, Wall Street’s equity index and the benchmark for global equities, rose nearly 5 percent early Tuesday, triggering a “limit up”.

Bitcoin has recently been tracking action in the equity markets and could continue to do so in the short term. From a technical perspective, though, there is scope for an extension of the ongoing recovery rally.

Daily chart
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Bitcoin created a hammer candle on Monday, validating oversold conditions suggested by the 14-day relative strength index. A hammer comprises a long lower wick with a small body, and occurs when the sellers fail to keep prices at the lowest point of the day. Essentially, it represents seller exhaustion.

As a result, a move to the $5,900–$6,000 range may be seen in the next 24 hours or so. That range has recently capped upside in the cryptocurrency.

4-hour chart
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Buyers need to…

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Which has crashied more in the past couple of weeks – Bitcoin or the stock market?

Stocks have gone off a cliff in the past two weeks, reeling from the rapid global spread of coronavirus. The Fed has made two emergency cuts in the shortest time period it has ever done so, cutting rates to near zero. Last Thursday was the worst day for stocks since the Black Monday crash in October 1987. The S&P 500 is down 11% in the past five days, the Dow down 13% in that time, and the Nasdaq down 10%.

But bitcoin has fared even worse.

The leading cryptocurrency by market cap is down 30% in the past five days, and now down 50% in the past month. On Friday, bitcoin tanked 25% in just 24 hours, bringing it below $6,000 for the first time since May 2019, 10 months ago.

Bitcoin rose 87% in 2019, and it had been having a very strong 2020 until mid-February; now it’s down 30% for the year.

As of Monday at noon, bitcoin was hovering at $5,000.

S&P 500 vs bitcoin over the past 30 days.

View photos

 

S&P 500 vs bitcoin over the past 30 days.

“It is quite fascinating to watch how bad it’s performed,” said David Zervos, chief market strategist at Jefferies. “To see bitcoin off $1,400 in a day, that’s not going to give people a lot of confidence that it’s doing what it’s sort of marketed to do.”

The other largest cryptocurrencies aren’t doing any better amid the coronavirus rout: ether (ETH) is down 30% in the last five days, 56% in the last month; XRP (XRP) is down 25% in the past five days and 52% in the past month; bitcoin cash (BCH) is down 32% in the past five days and down 60% in the past month.

What happened to the idea of crypto as a safe haven asset, a hedge against economic uncertainty?

The best answer for now is that coronavirus, a so-called black swan event, has become such a massive shock to the global economy that basically every asset class is down, creating a risk-off environment in which crypto, already a notoriously risky investment, isn’t very attractive. Investors are hurriedly selling off stocks, and they’re not moving that cash into crypto.

On the other hand, gold has outperformed crypto in 2020, which has further dinged the “digital gold” theory for bitcoin. Even widely reported (ultimately incorrect) rumors that paper cash could transmit the virus did not boost the price of digital currencies.

Crypto bulls reman bullish. “I think these geopolitical events, including coronavirus and geopolitical tensions, really improve the use case,” Fundstrat’s Tom Lee told Yahoo Finance in February. “I think it’s a good time to look at crypto.”

Last week, Lee again reiterated…

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Bitcoin Price Falls

Coronavirus Madness Continues: Bitcoin Price Crashes

This is not the Bitcoin halving the crypto industry was talking about in 2020. The Bitcoin price crashed on the worst day for equities markets in 33 years. The Dow Jones plummeted 9.99% during trading, the S&P 500 lost 9.51%, and the NASDAQ took a 9.43% dive.

Even spot gold declined by some 4% Thursday, as the logic of Bitcoin’s detractors like Peter Schiff, gold is now positively correlated with stocks. However, Bitcoin was the biggest loser, with a massive run on the world’s first cryptocurrency driving prices down by over 40% in under 24 hours.

Wild Bitcoin Price Action

Spikes punctuated the losses as opportunists took big bites out of Bitcoin on sale. This kind of volatile price action is common in capitulating markets.

Following a price crash of over $1500 in an hour, Bitcoin price was steady around the $6000 in the next hours, however, as the Asian side of the world woke up there came the second course: A sudden crash from the $6K zone to a current low of $4266 on BitMEX (as of writing these lines).

There were also wild discrepancies between Bitcoin prices on different cryptocurrency exchanges. For example, a $400 spread at one point between BitMEX and CoinBase.

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BTC/USD 5-day chart, Gemini. Chart by TradingView

Bitcoin’s Worst Day Ever

Bitcoin’s price has cratered even further than this before, from its December 2017 all-time high of nearly $20,000 to even lower prices than today during the ‘Crypto Winter’ of 2018. But never has the Bitcoin price fallen so much in a single day.

There’s no doubt an absolute hysteria over coronavirus that has wholly gripped the financial markets. Toilet paper became a trending term on Twitter on March 12, 2020, a day that will forever live in infamy because panic buyers bought all the toilet paper in big-box retailers across the United States.

Unfortunately, the same mentality has infected financial markets. It’s a testament to the reality that market pricing is only rational and value-based given enough time. And that given any short period, irrational emotions can be a significant factor in the pricing of financial goods.

All is left is to wait patiently to see what the new day will bring. Oh, yes. The new day is Friday the 13th…

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Bitcoin Tumbles To Its Lowest Price Since May 2019

Bitcoin dipped to a low of $5,600 on BitMEX for a matter of minutes, while most cryptocurrencies note double-digit losses. The whole market is plummeting, as it recorded a loss of over $50 billion in only a few hours.

Bitcoin Goes Below $6,000

It’s safe to say that the largest cryptocurrency has seen better days. Bitcoin’s price just noted a severe plunge. Earlier today, BTC was knocking on the door of $8,000, but in a few violent red candles, it tumbled to $5,600 on the popular margin trading exchange, BitMEX. To put things into perspective, this represents a 30% drop in a few trading hours.

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BTC/USDT 15m. Source: TradingView

Even though it has since retraced slightly to the current level of $6,200, the situation seems quite bearish. As Cryptopotato reported today, the largest digital asset broke down the critical support line from 2015.

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BTC/USDT 1W. Source: TradingView

To make the situation even worse, Bitcoin’s rapid descend smashed the support levels of $7,000, and the 2020 low of $6,800.

Thus continues the recent bearish trend. In a matter of weeks, BTC went from above $10,000 and a general belief that the market is bullish, to below $6,000 and “extreme fear.”

The only silver lining for Bitcoin at the moment is that the crash amongst the alternative coins is more severe. Thus, its dominance over the market grew to above 65%, as it was fading since the start of the year.

Altcoins Bleed Out As Well

The second-largest cryptocurrency by market cap is down by more than 30% since yesterday. ETH is trading below $140 at the time of this writing.

In fact, most of the top 10 coins by market capitalization have similar decreasing percentages of around 30 as Ethereum. As a result, Bitcoin Cash dropped to $173, Bitcoin SV to $123, EOS is slightly above $2, Litecoin is at $35, and BNB – $10.5.

Tezos and Chainlink are among the worst-performing assets in the past 24 hours. Both are plunging with over 32% to $1.57 and $2.40, respectively.

In the middle of February 2020, the total market capitalization went above $300B, and at the time of this writing, is approximately $171B. This represents a significant descend of over 40% in less than a month.

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Cryptocurrency Market Overview. Source: Coin360.com

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Bitcoin Price Is At Crucial Historic Decision Point, Huge Move Is Coming Up?

Over the past two days, we saw Bitcoin continued its correlation with Wall Street. After reaching a 2-month low at $7600, and finding support upon the historic trend-line, Bitcoin recovered to $8150, however, just like the Wall Street futures, BTC price lost momentum and now trading roughly around $7800 – $7900.

In the bigger picture, Bitcoin touched the historic ascending trend-line two days ago, as can be seen on the following weekly chart. This historic trend line was started forming in January 2015, when Bitcoin found the 2014 bear market’s bottom at $152 (Bitstamp).

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BTC/USD weekly overview, Source: TradingView

 

The coronavirus had created a new financial situation that led Wall Street to its worst day since the Sub-Prime real estate crisis in 2008.

No one thinks that this is the end of the volatility, as the global markets continue to see extreme moves. Yesterday Wall Street produced a green correction of 4%, while today’s trading is expected to open lower, as the futures pointing on a 2% decrease (as of now).

What is the relation? These days, Bitcoin is encountering its first major global financial crisis. During such times, most people tend to sell-off and hedge to cash.

Yes, Satoshi did plan to see Bitcoin as a safe-haven asset just like Gold, but so far, the past 2-3 weeks of trading proved something else, as the price of Bitcoin followed Wall Street and the global markets.

The 2015 Trend-Line

For the rest of this week, Bitcoin will have to ‘deal’ with the historical trend line and especially the crucial support around $7600, which is this week’s current low. A weekly close below $7600 is likely to send Bitcoin to new lows.

So far, we can see that the support holds firmly, but anything can change quickly, and as we already noticed, it also relies on external forces like Wall Street.

Total Market Cap: $225 billion

Bitcoin Market Cap: $144.2 billion

BTC Dominance Index: 64.1%

*Data by CoinGecko

Key Levels To Watch & Next Possible Targets

– Support/Resistance levels: In case that Bitcoin maintains the crucial level of $7600, then the first resistance will be the $8000 benchmark, followed by $8150, which is the low from yesterday. Further above lies $8300 and $8500.

From below, the first level of support is $7700, before the critical $7600. In case of a break-down, we can expect Bitcoin to reach $7400, which is weak support, and $7200 which is the Golden Fibonacci retracement level following the June 2019 bull-run.

Below lies and $7000 and $6800, which is the 2020 low from January 3rd. Further below lies $6400 – $6500, which is the double bottom from November – December of 2019.

– The RSI Indicator: following a failed attempt to break above the critical 50 RSI level, the indicator broke down violently. As of writing these lines, the RSI is trying to maintain above the 30-support level, along with the marked wedge as resistance.

– Trading volume: The volume levels are increasing in the past days. Monday’s drop volume marked the highest volume day in 2020.

BTC/USD BitStamp 4-Hour Chart

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BTC/USD BitStamp 1-Day Chart

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