Over the past few days, Bitcoin has maintained a significant decline. Despite a minor rebound to $ 6,882 at press time, the price is still 8% lower than the multi-week high of $ 7,470, set at the beginning of last week.
According to a well-known trader, it is too early to tell Bitcoin to return to a low level and is probably on track to retest a high level as the technical index is still slightly rising.
Technical outlook of BItcoin is still strong
The recent weakness in the cryptocurrency market has led traders to stop expecting Bitcoin to rise higher.
Sharing his views on April 12, he said that since cryptocurrencies had a super trend that lasted 6 hours, they were ready to break out of this trend level and continue to return to $ 7,400 in 4. next day.
I hate planning out multileg trades but probably something like in the next few days. I'm bull biased here unless we dump below 6.5k. Then it would be pretty clear invalidation. pic.twitter.com/e16Gj94JzD
- Flood (BitMEX) (@ThinkingUSD) April 13, 2020
“I hate planning multi-option deals but maybe something will happen in the next few days. I remain biased cows unless it collapses below 6.5k. Then it was pretty obvious disabled. "
Flood is a well known trader, known for his large positions betting on how the market will change. Earlier this month, he expected prices to rise from between $ 6,000 to $ 7,500, sharing the exact score.
A.Lower adjustments seem inevitable
Even if the price rebounds to a high around the middle of the $ 7,000 zone, it seems that correction is inevitable.
Mohit Sorout - partner of cryptocurrency speculation fund Bitazu Capital - believes that Bitcoin is forming a "valid head and shoulders top" on the 1-hour chart after recent volatility. He also emphasized "this index is one of the most reliable classic models".
- Mohit Sorout 📈 (@singhsoro) April 13, 2020
The chart he shares shows that Bitcoin is following the pattern of creating 3 consecutive peaks with a head and shoulders shape while continuously reporting lower volumes. Is the standard discount sign.
S&P 500 and Dow Jones are also expected by some analysts to decline. For example, Scott Minerd of Guggenheim Invest once pointed out the disaster of Bitcoin, which is closely related to the stock market that many people have referred to as the S&P 500.
Minerd already write In a note dated April 5, published by global investment firm Guggenheim, while he was looking for value, he also hoped that an asset would depreciate in the market and could potentially adjust the S&P 500. up to 1,500 points.
Accordingly, Bitcoin certainly falls along with stocks, because in the global bear market dollar liquidity is the key, the correlation index of all assets denominated in US dollars will turn positive.
The possibility of price increase in April and May
Dan Tapiero has revealed statistics proving the monthly average increase / decrease of Bitcoin price. It seems that the Bitcoin Spring really started in April.
Best average monthly gains for #Bitcoin come in April and May.
The Hardening coming up should further support in good seasonal period. pic.twitter.com/rY7mfSjIfh
- Dan Tapiero (@DTAPCAP) April 13, 2020
"Best average monthly returns for Bitcoin was in month 4 and 5.
Halving Upcoming will support more for the stage this ”.
In contrast, the worst losses usually occur in September, August and January. This analysis covers the period of 2012-2019 and calculates a profit / loss equivalent to the US Dollar.
Moreover, Tapiero is sure that the increased correlation between Bitcoin and traditional markets will not break this long-lasting principle.
Halving 2020 is considered a measure of 'hardening' of supplies
Tapiero's view of halving Bitcoin Tuesday on May 13 is beneficial to the price. He emphasized the event will provide ‘extra support’ to the positive trend of Bitcoin spring.
Traders have even compared halving to ‘hardening’, referring to the US Federal Reserve's quantitative easing policy. While COVID19 countermeasures can lead to inflation of some assets, the halving event will do the opposite of the king's supply.
"I think "halving"Has been officially replaced by"do hard". Am I wrong?”
The vast majority of analysts supported the possibility of raising prices for halving after another month while other critics like Peter Schiff mocked this sentiment, because ‘half of nothing is still nothing’.
You can see the price of BTC 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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