Bitcoin (BTC) price rebounds after central banks of several countries announced their support to markets and promised to provide the help needed to protect the global economy.
Seems that after suffering losses, markets have started recovering. A prime example of this recovery is Bitcoin that reached 3.2% in daily gains on March 2. Still being down from earlier highs of $8,900, Bitcoin is trading at $8,797.68 at the moment of writing. Notably, Bitcoin price rebounds after the last week’s 14 percent sell-off, which was the harshest in three months.
According to some analysts, crypto prices will remain stable. They believe that even coronavirus fears will not affect the market dramatically. As explained by Cointelegraph, governments strive to supply financial stimulus packages and boost their economies, therefore, traditional markets slowly rebound as well. Besides, investors show interest in any short-term remedies that can cover their last week’s losses. And cryptos can be these remedies.
In general, Bitcoin’s monthly losses made up 5.7%. Yesterday, the top currency was down 9.3% in comparison with the beginning of the previous week. But experts stay optimistic. For example, Cointelegraph Markets analyst Michaël van de Poppe believes that a break higher could set BTC/USD as high as $9,175 before resistance kicks in.
Still remaining the same on higher timeframes, but we might see a bounce upwards to $9,175 here.
That's my main level to watch for potential resistance, if market bounces up. pic.twitter.com/PDbj6t7JbI
— Michaël van de Poppe (@CryptoMichNL) March 2, 2020
And he may be right. As in May 2020 Bitcoin halving will happen, its price may increase and break the resistance level.
Central Banks to Support Markets
Bitcoin price rebounds after central banks of several countries announced their support to markets. The U.S. Federal Reserve, European Central Bank, Bank of Japan and Bank of England have promised to offer any help needed to protect the global economy from the consequences of coronavirus outbreak.
Fed Chair Jerome Powell said that the central bank would “use our tools and act as appropriate to support the economy.”
The Bank of England stated:
“The Bank is working closely with HM Treasury and the FCA (Financial Conduct Authority) – as well as our international partners – to ensure all necessary steps are taken to protect financial and monetary stability.”
Japanese Bank has also promised to intervene to stop further big falls on global stock markets. It stated it would provide “ample liquidity” to ensure stability in financial markets.
John Todaro, currency research director at New York-based crypto firm TradeBlock, commented:
“Investors are dipping their toes back in the water after last week [when] they jumped out of the pool. This easy monetary policy across central banks should continue to support markets in general, especially in risk-on areas like equity markets, and that should bleed into other asset classes like digital currencies, including bitcoin.”
But even with support, central banks are not the answer to coronavirus fears. And the questions about how much they can really do to mitigate the coronavirus shock to the economy and markets are still open.
next