Bitcoin Price Dropped Below $6,000 Yesterday, Now Trading Above $6,200

UTC by Jeff Fawkes · 3 min read
Photo: Depositphotos
Photo: Depositphotos

Yesterday, it was the second time during the week when Bitcoin performed a deep dive. The short positions must be very profitable as Bitcoin’s volatility makes it bounce back to $6,200. Experts claim the $5,000 level is possible.

Bitcoin price looks like there are lots of bulls around. Since Bitcoin did not hit $5,500 by Sunday, bulls saw that many of the predictions are fake and started buying. Horus Hughes thinks that the investors are in fears of Monday opening on classic markets. Previously, the bulls didn’t manage to sustain Bitcoin at the $6,200 position, but now it seems like they want to jump there once more. Bitcoin’s volatility index is rising, the trend is bearish, slowly turning into bullish in the last couple hours.

Data from Alternative.me shows that the Fear & Greed Index is now at Extreme Fear (10). A slight improvement from yesterday’s 12 Fear record mark. Since March 12, Bitcoin price found support at $5,700 at least five times.

Bitcoin Price Can Land At $5,000 Thanks to Bears

Per John Isige, Bitcoin price can explore the $5,500 level soon. The technical picture is positive, but Bitcoin looks weak. According to the graphs, BTC price was heading to $6,000 since Friday. However, if the bulls let Bitcoin fall below $5,800, the next scary price target may be at $5,000. The RSI indicator claims bulls have not enough power to sustain the $6,000 level for a long time.

Famous crypto analyst Benjamin Cowen wrote a work claiming that the approach of Bitcoin Halving will not necessarily improve price action. In his YouTube video, Ben is busting the cyclical price theories. He dives into the 4-years price graphs only to prove that there is no correlation between the price increase and the halving.

Bitcoin indeed experienced a price rise after the halvings back in 2012 and 2016. Many of the market experts claim that Bitcoin could gain around $10,000 to $250,000 immediately, or 6 months after, the halving occurs. Such theories have no substantial grounds and must be accepted as a free interpretation of the market.

He identified a series of price peaks and lows, forming the cycle that takes place at the beginning of the network’s functioning. Such cycles were working even before the first halving, and back then people didn’t know that the price will gain meteoric growth.

Bullish Bitcoin Trend Breaks During Coronavirus Attack

What is the most interesting in his analysis, is that Bitcoin will remain in the accumulation phase till 2022. Previously, Cowen was a Bitcoin bull, even claiming that Bitcoin could reach $100,000 in the next few years. We can see how market analysts are changing their minds. If even Cowen thinks things are bad, the changes in the market itself must be colossal.

The unemployment rate starts growing these days, marking the beginning of a new era of mind. If people don’t develop the skills of working at home, they may go crazy and do unnecessary stuff. It’s hard to stay alone with yourself, but you have to learn someday.

From a non-trading perspective, it is scary to see the investors pledging on a bear trend. Even if Bitcoin gains thanks to new investors, it will lose due to people withdrawing in fear of coronavirus. Situation very similar to the one on fiat markets, where altcoins are fiat currencies and Bitcoin is a dollar.

Bitcoin News, Blockchain News, Cryptocurrency news, News
Jeff Fawkes
Author: Jeff Fawkes

Jeff Fawkes is a seasoned investment professional and a crypto analyst. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.

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