Well-known analysts believe that the fate of Bitcoin will depend on how it works in the ongoing financial crisis, but on-chain figures show that BTC has many barriers ahead.
Bitcoin is on the verge of failure
Many are wondering what will happen to Bitcoin when President Donald Trump signed a $ 2 trillion stimulus package designed to ease the devastation caused by the COVID-19 pandemic in the market. finance.
For example, veteran trader Peter Brandt believes this is the perfect time for BTC to thrive. Brandt asserts that if BTC cannot emerge as a safe haven and recover during an ongoing economic crisis, it will be in great trouble.
Although many famous analysts have argued that there is a possibility that 72% of Bitcoin will surpass $ 10,000, data from IntoTheBlock reveals that such an upward move will not be easy.
Based on the global In / Out of the Money model, there are 3.2 million addresses earning 2 million BTC at an average price of $ 6,750. This hodlers can be considered a relatively strong resistance area in case of price increase.
However, the most significant barrier awaiting Bitcoin lies in the range of $ 7,600 to $ 9,700 of which nearly 6 million addresses are holding about 4 million BTC.
In / Out of the Global Money of Bitcoin follow IntoTheBlock
While fate remains uncertain, IntoTheBlock points out that the demand for BTC may fade. The Futures Volume model shows that there has been a significant drop in daily trading volume on leading cryptocurrency derivatives platforms.
Jesus Rodriguez, CTO at IntoTheBlock, affirmed:
“Although Bitcoin's price has not changed much over the past week, Bitcoin's Futures Volume is currently at a 7-day low of just $ 653 million. This represents a 90% decrease from March 12, when the daily volume reaches $ 6.39 billion. ”
Futures Volume of Bitcoin according to IntoTheBlock
A similar pattern can be seen for OI, representing the total number of prominent investor positions. Indeed, open interest continued to decline from $ 1.76 billion at the end of February, to $ 149 million yesterday. This represents an 85% drop and is the lowest point in the past month, according to Rodriguez.
OI follow IntoTheBlock
Despite the significant decline in the trading activity that Bitcoin has experienced, the upcoming amount of financial and monetary stimulus is sure to have an impact in the cryptocurrency market, Bitcoin professor Davinci Jeremie said.
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Analysts explain that because the market operates as a discount mechanism, market makers will take Bitcoin prices further. The idea behind pushing up BTC is that those who are free to buy by the Federal Reserve can buy it at a higher price.
Time will tell which price milestones will come first, $ 7,000 or less than $ 6,000, this will determine where Bitcoin is heading.
You can see the price of Bitcoin here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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