Bitcoin quickly regained $ 6,000 after losing this support on the morning of March 30, when analysts realized the price potential would fill a new gap in the futures market.
Bitcoin price increased by 3% after a brief dip
At the time of writing, the Bitcoin price is trading around $ 6,300 - up 2.8% on the day.
The last 24 hours have seen prices drop to a low of $ 5,870 after signaling weakness throughout the weekend. However, those things only existed for a short time with Bitcoin regained a foothold in a few hours.
Now, there is high hope that price action will still increase, allowing Bitcoin to close the gap with the new futures gap at the end of Friday's session.
The gap is between about $ 6,300 and the closing of the CME futures session on Friday at $ 6,680.
Bitcoin has very often returned to trading in the void left by futures markets - before its price volatility increased in mid-March, only a gap, much higher at $ 11,800 .
However, for analyst Michaël van de Poppe, there is still a downward trend in Bitcoin, although the upside potential is set by the gap.
The first level for support held and we’ve pushed upwards.
There’s also the CME Gap, probably the reason why we cant move, so that could be closed first.
This means that a $ 6,050 flip could trigger another push to $ 6,400- $ 6,500, before further down.
Still bear pic.twitter.com/bn0BHHRDHd
- Crypto Michaël (@CryptoMichNL) March 30, 2020
The analyst says that the first level of support is held and the price is pushed up. There is also the CME Gap, which is probably the reason why prices move, so may close at the previous support level.
This means that a flip of $ 6,050 could trigger another push of up to $ 6,400 - $ 6,500, before continuing further down.
6-month CME Bitcoin chart showing gaps. Source: TradingView
You can see the price of Bitcoin here.
China participates in printing fiat money
In Asia, central banks have continued a giant international money printing program to deal with the severity of the corona virus. For example, China announced a $ 7 billion cash payment for the banking system.
The amount of money compared to the US response last week, will see an unprecedented $ 6 trillion in money added to the dollar supply.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Cointelegraph
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