An hour ago, the price of Bitcoin (BTC) suddenly dropped from $ 6,700 to $ 6,250 in just a few minutes. This move caused at least $ 20 million worth of Long positions on BitMEX to be liquidated, and possibly millions of dollars on other exchanges.
Although the selling pressure has now subsided, with BTC rebounding slightly to around $ 6,300, prominent cryptocurrency analysts appear to fear that the worst has yet to happen.
The sell-off of Bitcoin has not ended
Trader DonAlt - who predicted quite a bit of Bitcoin's recent decline, shared the chart below and said that the recent price action of BTC is "quite familiar".
As can be seen in the chart below, this trader is referring to price action occurring since March 12 which is similar to the action seen in late February to early March, during which BTC increased. higher and only start falling when it hits resistance (red bar).
Why does this feel so familiar pic.twitter.com/8mSWsDucA5
- DonAlt (@CryptoDonAlt) March 27, 2020
If Bitcoin follows this pattern, it will probably make an effort to surpass $ 7,000 in the coming days, and then plummet - potentially to an earlier low of $ 3,800.
The outlook for the crypto market will continue to pull deeper even more, repeated by Bitcoin analyst Crypto Cactus - who commented that with the recent action, the king will move below a major horizontal level and is There are signs of entering a bearish period, which can cause Bitcoin price to lose more in the short term.
$ BTC LTF Update
So it begins, congratulations to everyone who deployed some patience over the past few days, nice to finally have the expected move to the downside in lower timeframes…
Apologies the continued bearish LTF posts this week but I just want people to keep profits. https://t.co/5t0ot0v5jj pic.twitter.com/RJ3P6wQkyc
- Crypto Cactus (@TheCryptoCactus) March 28, 2020
The basic trend is still strong
Setting aside recent price action, many believe that the fundamentals of Bitcoin are still very strong.
According to data released on Thursday, the Federal Reserve's balance sheet (Fed) has reached a record $ 5.25 trillion, adding $ 586 billion worth of assets - or more than 10% of the total balance sheet in the previous week, in just 5 days. The Fed's move comes after last week's balance sheet increased by more than $ 300 billion.
There is a consensus among analysts that the trend is extremely optimistic for scarce assets, including Bitcoin. BitMEX Research wrote in a recent report that record cash flows stimulating the economy will give Bitcoin one of the "greatest opportunities ever", as potential inflation will prove the need for a Protective assets:
“In our view, in this changing economic regime where the economy and financial markets are loose, there is no significant anchor, not even targeting inflation, that could be is the greatest opportunity Bitcoin has ever seen, in its short lifetime. ”
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According to NewsBTC
Translated by ToiYeuBitcoin