BTC/USD Outlook & Technical Analysis for Bitcoin
An increase in demand for the United States Dollar and other crypto-based variants such as the USDT and USD PAX, following a crash of the stock markets has led to a sudden slump in cryptocurrency prices across Singapore brokers.
Panic selling from the stock market crash like the Dow Jones (DJI) means investors will look to cover their positions using the USD. Consequently, they will have to take profits off haven asset classes like Gold and cryptocurrencies (Bitcoin BTC).
In this post, we’ll expose the technical chart patterns, significant levels, and touch on some recent news events in the Bitcoin BTC market.
Bitcoin to USD Technical Analysis
The monthly chart above shows the price slump below the 50 monthly Moving Average, a first since the golden cross on 01 Oct ’15 when the Bitcoin BTC was selling for $310.18.
A close below the MA-50 from the monthly time frame would be a total game-changer for the future growth of the BTCUSD.
A lot of HODLers that are new to the trading and investing industry are shocked by the price slump since they blindly follow the narrative of Bitcoin BTC being a hedge against uncertainties that plague traditional economies.
The bulls begin to speculate on a regular bullish divergence pattern three weeks after the -54.86 price plunge.
The BTCUSD from a 4hour time frame starts to recoil after signaling volatility oversold below the level-20 of the stochastic oscillator.
At the moment, the exchange rate trades within a bearish channel established by both bullish and an anticipated bearish divergence pattern on all Singapore broker platforms.
Analysts Super Bullish on Bitcoin Price Following 80% Rebound
With the ongoing coronavirus pandemic having a significant effect on the traditional market, Bitcoin (BTC) continues to buck the trend, having made a U-turn on its initial bearish stance.
Despite the pandemic, the cryptocurrency is now turning the disaster into a cause for gains, having gained 80% in just one week.
According to data from Coin360, BTC/USD on March 20 climbed as high as $6,650, recording 24-hour gains of over 20%. This is contrary to last week’s lows of around $3,700, meaning that the pair has appreciated 79.5%.
As the reaction of Bitcoin to Coronavirus continue to deliver surprises, analysts are now concentrating more on the deadly consequence of the associated health crisis on the world’s economy. The mood among market participants following the Bitcoin’s recovery has also become one of solidarity, with most taking up a bullish stand.
CEO and founder of Global Macro Investor Raoul Pal, last Thursday, expresses his stance in a tweet where he maintained that he was taking up a bullish position.
According to Pal, all confidence is failed as investors are at danger of missing the whole system. He, however, expressed confidence that the market will find a way to save itself.
Meanwhile, US senator and Bakkt CEO Kelly Loeffler, according to reports, traded up to 3.1 million USD worth stocks some weeks after being present at closed-door guidance on Coronavirus back in January.
Conclusion and Projection
A price close below the $6425.00 breakout support from a monthly chart overview would prove that the bears have resumed control of the exchange rates.
Conversely, a slowing of the stock market crash may raise a comeback in interest towards cryptocurrencies, and consequently leading to an increase in demand.
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