After days of non-action, Bitcoin price suddenly plunged crashing from the $6,700 base to $6,250 within minutes. While the selling pressure has since subsided, with Bitcoin settling around $6,300, a swath of noticeable digital currency traders fearing that the worst is yet to come.
Analysts Conclude Bitcoin’s Sell-Off
Crypto trader, DonAlt, posted the below chart while asking the reason why recent price action seems quite familiar.
As can be seen below, the commentator is alluding to his opinion that the price action that has unfolded since March 12, 2020 is like that seen in late-February to early-March, during which Bitcoin revitalized higher to just get dismissed at a horizontal resistance.
In case BTC is to follow this framing example perfectly, it will try to surmount $7,000s in the coming days, at that point fall drastically, potentially towards the neighborhood lows at $3,800.
The desire that the crypto market will continue to trace further has been resounded by Bitcoin chartist Crypto Cactus, who commented that with the ongoing move, the digital currency has moved beneath a key horizontal level and is giving indications it is going into a textbook ‘mark down’ phase, which will probably bring about more misfortunes for Bitcoin for the time being.
$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…
— Cactus (@TheCryptoCactus) March 28, 2020
Putting the recent price activity aside, many people believe that the basics of BTC remain anything besides weak.
As indicated by information released on Thursday, the Federal Reserve’s accounting report has arrived a record of $5.25 trillion, including $586 billion worth of benefits in a negligible 5 business days. This comes after a week ago’s accounting report increment of over $300 billion.
The consensus is that the trend is incredibly bullish for rare assets, including Bitcoin. BitMEX Research set up in an ongoing report that the record influx of financial and monetary upgrade will give Bitcoin one of its ‘greatest chances yet,’ as the potential swelling that will come will demonstrate the need for a disinflationary asset –
“In our view, in this changed economic regime, where the economy and financial markets are set loose, with no significant anchor at all, not even inflation targeting, it could be the biggest opportunity Bitcoin has seen, in its short lifetime.”