Well, it looks like bitcoin has impressed us all again. After spending the last few days in the mid-$6,000 range (around $6,450), the world’s number one cryptocurrency has set its sights on higher ground, spiking by roughly $400 over the past 24 hours to trade at just under $6,900.
Bitcoin Never Ceases to Amaze Us
Many were thinking that luck had potentially run out for the currency. That the recent drops it had incurred were too much for it to handle, and that things were in no way going to pick up from this point on, but now that the currency is on the verge of reaching $7,000 for the first time in nearly a month, perhaps things aren’t as bearish as we all thought.
And yet, there are those who would still disagree. Despite the positive behavior bitcoin has exhibited over the past day, many still believe the asset is heading for further lows, and still trapped in a downward spiral.
Joe DiPasquale – CEO of cryptocurrency hedge fund manager Bit Bull Capital – says that bitcoin’s recent losses have been purely technical, but feels the bearish conditions aren’t quite over. In a statement, he explains:
The zone between $6,000 and $6,200 is keeping the price afloat over the last few days… A death cross (opposite of a golden cross) formed on the charts on March 29 as the 50-day moving average fell below the 150-day moving average.
Kiana Danial – CEO of Invest Diva – holds a similar belief and doesn’t think bitcoin is quite out of the woods yet. In a recent interview, she explained:
On the four-hour chart, BTC/USD has crossed below the Ichimoku cloud which is certainly a bearish signal and could take bitcoin to the 38 percent and 50 percent Fibonacci retracement levels of $5,898 and $5,623 respectively.
Bitcoin has had a very rough and tumble month in March, especially when compared to where it was standing in February. During that time, the currency had spiked to a 2020 high of approximately $10,350, though at press time, despite the solid price maneuver it’s incurred recently, the asset is still $3,500 in the red, meaning there’s a heavy amount of room to improve.
Despite the Good News, Some Say Things Aren’t Finished Yet
The price falls are largely due to economic strife caused by the coronavirus pandemic. Many are experiencing a sense of heightened fear and panic as businesses are closing indefinitely and markets are witnessing poor results. Investors are beginning to view speculative assets like crypto and stocks in a negative light and see cash as king during times like this.
Thus, bitcoin experienced a mass selloff in recent weeks from those looking to rid themselves of crypto and get their fingers on fiat money, which some investors believe will keep their wealth stable.