It seemed too good to be true, and perhaps that is the case, but the fact that Bitcoin has fallen back down towards the $6,000 after almost touching $7,000 may well be a good thing. It was indeed an impressive recovery as Bitcoin managed to tip over $7,000 for the briefest moment but the long run forecast never expected this price to stay.
Bitcoin has been hammered, along with other traditional markets, but the impact of the Void-19 outbreak that has probably triggered a global financial crisis. However, when Bitcoin managed to almost recoup its gains following the sickening tumble, people were right to be a little wary.
Bitcoin is now back closer to $6,000, which is still a lot better than it was when it managed to sink as low as $3,800, but the collapse towards $6,000 represents a price correction this time rather than a price collapse. Meanwhile, the rest of the global markets are still in dire straits and even with this fall, Bitcoin is actually making a good recovery.
Unfortunately, it appears as if Bitcoin may have fallen below some key resistance levels in its drop back towards $6,000. If it was able to keep things up, while dropping back, there would be good news in the technical analysis but as it stands, investors should be wary.
Markets analyst filbfilb has called for support being necessary at $6,400 to secure the chance of further upside, and after making it up towards $7,000 and dropping rapidly below that marker, it seems more losses may be imminent.
Another analyst, Michaël van de Poppe, was hoping that $6,800 would stick and help Bitocin push towards more gains.
“I’m just expecting the bottom formation to be structured over a longer period due to the economic instabilities worldwide. Unless we crack and flip $6,800,” he wrote on Twitter.
Tone Vays is another one who predicted that more losses could hit Bitcoin at any time, particularly in the run-up to the block reward halving in May. Such an event could take the cryptocurrency as low as $2,000, he forecast.
A better space
If Bitcoin is able to hold above $6,000, it may be beyond some key resistance levels that are looking to hold the coin to fresh gains, but it is at least a better position than the cryptocurrency found itself in as the markets collapse. More so, Bitcoin is at least showing life in a time where the rest of the traditional markets are dead, and haemorrhaging value.