Bitcoin with lateral movement
The No.1 crypto currency continues to hold above the important 7000 USD mark on Sunday, securing the weekend’s profits. While the hype ahead of the upcoming BTC Halving Event is growing noticeably, the Corona crisis could put a damper on the bullish investors’ spirits.we take a look at the current situation.
Bitcoin price in detail
What looks like a conventional sideways movement in the day chart could well become important for the further course of the Bitcoin. At the time of writing, digital gold is trading at a price of $7221 USD. With this, the BTC confirms that 2 significant limits have been exceeded: The 7000 USD mark and the 50 day average (approx. 6950 USD). The trend line at 7200 USD could now form the new basis for the next attacks. However, a 24-hour volume of around USD 32 billion suggests that investors are waiting for the traditional markets to open.
Correlation to stock markets increases, volatility decreases
It’s quieter in the crypto space. Price fluctuations in the double-digit percentage range are no longer the order of the day and Bitcoin has been moving in a manageable range for weeks. The coronavirus pandemic continues to have a firm grip on the world. Governments are fighting against the tangible global economic crisis with huge rescue packages and researchers are working at full speed on an active substance against COVID-19. On Friday, reports of positive tests with the Ebola drug Remdesivir pushed the Down Jones up by a whopping 2.5%. As a result, Bitcoin was able to sustainably overcome the well-known resistance at 6800 USD.
A glance at the current BTC chart reveals a certain risk of confusion. A similar picture could already be observed in March. However, at that time the short-term pump turned out to be a short-term snapshot. If we start from the traditional markets, many experts continue to forecast a historical bear market. The IMF recently spoke of a situation comparable to the “Great Depression” of 1929. Should this case be confirmed in the coming weeks, Bitcoin Halving could sink into hysteria. This would be the pessimistic view… But there is another perspective.
Bitcoin Halving as a unique opportunity
From a bullish perspective, Bitcoin could underpin its exceptional position with the upcoming Halving Event. By halving the reward, the inflation rate drops to around 1.8 (lower than the inflation rate of gold). In combination with the fixed ceiling, the digital currency could become a unique store of value and a safe haven for desperate investors. New capital could shoot the crypto market to 2017 levels and create a new hype. Already now, about 3 weeks before the halving, searches are rushing up at a rapid pace.
Without the famous crystal ball, reliable forecasts are currently impossible. Due to the low total market capitalization, the crypto market is still a marginal market. However, this could change with the upcoming halving. Much depends on the further course of the Corona pandemic. If the situation calms down, BTC Halving could attract the attention of the mainstream. Then the way into the five-digit USD range would be clear.