Historically, Bitcoin performed quite well in the second quarter of every year. The evidence is that Bitcoin has rallied around April - July of 5 over the past 6 years.
However, from the beginning of 2020 until now, Corona has broken the market and made it more and more complicated. All assets are tumbling, from stocks, gold, oil and even cryptocurrencies. Given that context, it's not clear if the second quarter of this year will be in tune with history?
GBitcoin price will increase in quarter 2/2020?
The first quarter of 2020 ended yesterday and began entering the second quarter. The main theme of the year so far is clearly the spread of the virus and its economic impact on all markets. planet.
Of course, Bitcoin did not escape that accidental massacre and plunged tens of billions of dollars from an annual high of approximately 10,400 to a low of less than $ 4,000 on some exchanges.
At the time of writing, Bitcoin traded for about $ 6,277. Compared to the 2020 opening price of about $ 7,200, this figure is down more than 11%.
As the new quarter begins, observers are paying close attention to Bitcoin's historical moves, from early April to late June. As CoinCorner CEO Daniel Scott emphasized in the following tweet, the usual Bitcoin price increase in the 2nd quarter.
As Q1 comes to an end, let’s take a look back at #Bitcoin price movements for Q2
- Danny Scott ⚡ (@CoinCornerDanny) March 31, 2020
Since 2014 (except for 2018), Bitcoin has increased in the second quarter. After the year Bitcoin hit an all-time high, it was one of the most consistent periods of price decline in history.
The years with special quarter 2 increases are 2017 and 2019. In particular, 2017 is the year that saw BTC trade approximately $ 20,000 and in 2019 nearly $ 14,000 at the end of Q2.
VCorona irus is a signal to increase or decrease prices for Bitcoin?
The problem that caused a stir in the past 3 months and almost certainly the reason for the decline in Bitcoin price is the COVID-19 pandemic. The widespread unemployment, the increasing number of deaths and infections, and social isolation are the clearest evidence of the true severity of the disaster.
Some analysts think the central bank's response to the virus will make scarce assets like Bitcoin more attractive. Trillions of dollars printed in many countries around the world make the purchasing power of every currency in the economy decrease.
The Federal Reserve creates trillions of dollars out of thin air. The Fed is not elected by the people, not a member of the government, not a government agency, yet decides the monetary life of 100s of millions of people in the US. You can’t make this stuff up! #Bitcoin pic.twitter.com/bRjrbZW6VO
- Gabor Gurbacs (@gaborgurbacs) March 28, 2020
"The Federal Reserve generates trillions of dollars from nowhere. Fed does must be elected by the people, not a member of a government, not a government agency, but still determines the monetary life of hundreds of millions of people in the United States. Don't mess things up anymore!”
Similarly, with Bitcoin prices currently trading significantly lower, many people think that it will increase when this historic halving event occurs in May. Industry observers believe that the sudden shock to Bitcoin supply will be the catalyst for higher prices.
Of course, although economies are stagnant due to Corona and Bitcoin being immune to volatility in broader markets, it remains to be seen how much capital will flow into the market in the next 3 months. No one knows how long the quarantine situation will last and when the normal world will return.
Bitcoin monthly candle for March
The values for the March candle are as follows:
- Open - $ 8,525
- Close - $ 6,410
- High - $ 9,219
- Low - $ 3,850
It is worth noting that the lower wick has a intensity of 40%, which shows there is considerable buying pressure at prices below $ 6,000. However, the candle still has a 24% lower body and looks like a discount hammer.
In addition, the monthly RSI has reached the level of 50. Prices below this level will indicate a downward trend.
Bitcoin chart | Source: Trading View
In the short term, the price has followed the descending resistance line since March 15 when reaching a high of $ 6,957. At the time of writing, the price was rejected from the resistance line and started to decline.
In addition, there is a strong resistance zone at $ 6,500, which price has been unable to breakout for the past 2 days.
Finally, the price may be following the ascending support line. Unable to breakout from the current resistance level has pushed BTC to the support line. At the time of writing, this scenario is very likely.
Bitcoin chart | Source: Trading View
In a nutshell, Bitcoin created a bearish hammer in March but is attempting to sustain above the critical monthly support level. In the short term, prices are expected to fall along the support line of the symmetrical triangle.
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.
According to AZCoin News
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