Amid the continued decline in financial markets due to the spread of Coronavirus, the Bitcoin exchange rate is unstable. This week, we have seen signs that Bitcoin is rising from the bottom and its price is moving forward. The current fall in Bitcoin volatility is causing a mixed reaction among analysts. The idea is spread among investors that the fluctuation of the Bitcoin volatility is not a good sign.
The lull in Bitcoin movement now, may cause excessive movement in the near future.
The leading cryptonalyst Anondran commented on this situation:
“Now the lowest volatile BTC candle is 3.3%. Considering the fact that at the time of the record drop on March 11, this figure will be 2.4%, we are waiting for big changes. Bitcoin is getting ready for a big move. ”
Uncertainty about the future market behavior of Bitcoin is causing concern among investors. They froze in anticipation, since no one can accurately predict whether the course will rise higher or fall down. Now Bitcoin is trading in the range of $6,800 and trying to break above the level of 7 thousand dollars. Some analysts believe that Bitcoin may fail and again slide down to the level of 5 thousand dollars.
How will Bitcoin behave further?
The fall in bitcoin volatility triggered a revival of trading in the cryptocurrency market. According to Glassnode, over the past 24 hours the number of new users has increased by 11%.
In connection with the massive spread of Coronavirus and the need for financial support for individuals and legal entities, the US government has allocated $2 trillion. Each US citizen will receive assistance in the amount of $1,200 in cash. Some experts see this as a positive side for Bitcoin. They believe that part of the money issued will be used to purchase Bitcoin. Amid growing demand for the purchase of Bitcoin, its price will increase. The upcoming halving Bitcoin “warms up” this situation.
Other analysts, on the contrary, believe that due to the impending difficult economic situation in the United States, Bitcoin may lose its position. US Social Services announced that more than 3 million people have already been registered who have lost their jobs due to restrictions imposed due to the spread of the pandemic. Most U.S. citizens are expected to have zero income.
In such conditions, investors will be forced to sell cryptocurrency in bulk, which will provoke a fall in prices. This will be done in order to keep the country’s economy afloat, in particular to ensure the liquidity of the dollar.
Now it’s impossible to say exactly how the Bitcoin exchange rate will move over the next few weeks. But, the fact that big changes await us is beyond doubt.
This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.