It was looking like the crypto industry had entered irreparable territory a few weeks ago. Bitcoin, for example, had dropped by thousands of dollars, and it didn’t take long for several of its altcoin cousins to follow suit.
Bitcoin Is Back in the Green
Now, however, things are once again looking up, and many analysts are wondering if bitcoin – which has recently surged by nearly $400 in the past day or so – will continue its rally and experience its 2020 high all over again.
One source is claiming that renewed interest in the asset has appeared. This makes sense considering bitcoin has seriously recovered from the bearish claws that were all over it. It was in early March when the world’s number one cryptocurrency by market cap dropped into the $3,000 range from $10,000 a month prior, meaning that it had lost close to $7,000 of its 2020 value – nearly three-quarters in all.
The fear and panic surrounding the growing coronavirus pandemic caused many people to sell their assets – whether traditional or not – and grow their cash hoards, as in times like these, cash tends to be king. The selloff that occurred not long after resulted in heavy price dips for the world’s biggest crypto asset, but now people are looking to once again get their fingers on new BTC units.
All it takes is a $1,000 spike here or there, and boom! People are off to their local exchanges to see about making a purchase.
Several analysts believe the end of bitcoin is nowhere in sight – that this was simply a step back and that the currency is once again showing its resilience and stepping up to the plate. Jeffery Liu – CEO of crypto processing company Xan Pool – explained in a statement:
Despite recent bitcoin selloffs, we’re still very bullish on the bitcoin price. Though our Xan Pool platform, which still has over 20,000 transacting users across Southeast Asia – we currently see customers heavily buying, and very few customers selling. This indicates that the recent price movement downwards was derivative market heavy.
Other analysts claim that bitcoin is about to make a heavy rebound. According to Turr Demeester of Adamant Capital, $6,300 was a significant point of resistance for the world’s number one cryptocurrency, and the fact that it was able to surpass it in a relatively short period suggests that the asset is about to surge higher than anyone anticipated.
Recent Resistance Has Been Broken
On Twitter, Demeester recently wrote:
Bitcoin back in the box, IMO we’re still in the re-accumulation phase. Looks messy technically, but the rebound is encouraging so far. $6,300 could be key resistance level before bull market can resume.
The Fed has also announced that it will purchase billions of dollars in U.S. debt, which could also be contributing to bitcoin’s sudden rise.