Expert: Bitcoin Repeats The Behavior Model For December 2019, When The Price Fell Below $ 7,000
The global financial market almost daily faces new challenges associated with the spread of coronavirus and forcing the general situation. The last two weeks have become an indicator of the negative forecasts that have been in the air before. The Bitcoin exchange rate fell to $ 8,400. At the same time, US stocks plummeted and triggered a stir on the stock exchanges. Yesterday, March 5, the Dow Jones Industrial Average fell 2.6%.
Analyzing the current situation, experts note that Bitcoin remains viable, it has powerful resources to restore its position.
Bitcoin repeats December 2019 behavior model
It is important to consider that Bitcoin is a liquid asset and it is on a par with stocks, bonds, and other resources. Thus, it may fall under the technical analysis that is carried out for similar liquid assets. Some analysts note that Bitcoin is waiting for an early bull shortly.
One of the leading traders, whose forecasts previously came true regarding the fall in Bitcoin prices, also commented on this situation. He believes that after the depreciation of Bitcoin below $ 10,000, there is every reason to believe that this digital currency is at the stage of “Wyckoff Accumulation”.
The introduction of this indicator in everyday life was initiated by leading financial expert Richard Wyckoff. This means that the asset pauses a little and enters the accumulation phase so that then it will jump sharply in price.
Now Bitcoin is in the middle of the accumulation phase. Experts suggest that Bitcoin can repeat the model of its behavior in December 2019, when the price of this asset fell below $ 7,000, but then broke above the initial level. There are predictions that as a result of the run bull, Bitcoin will rise to $ 9,800.
What are the other signs of the upcoming Bitcoin run bull?
Other macroeconomic indicators also indicate that Bitcoin may soon rise above $ 10 00. In particular, Bloomberg recently noted that Bitcoin was able to return within the Trading Envelope indicator. This indicator is formed from the upper and lower bands and displays moving average data. Now Bitcoin is in the lower lane.
The analyst notes that Bitcoin has every chance to occupy the upper band shortly. This can be a real breakthrough for the most popular digital currency. There are predictions that Bitcoin could rise to $ 10,600. We witnessed a sharp increase in this digital currency in December 2019, when it was under the lower band of the Trading Envelope indicator.
The good news: In India, banks have received permission to cooperate with cryptocurrency companies. For more than 1 year, a forced interruption was made in servicing these companies due to the decision of the Central Bank of India. Thus, a new round in the development of digital currencies and an increase in their demand are forecasted in the country.
The last days have become indicative of Bitcoin. The market capitalization of this digital currency has grown by 4, 33% and now amounts to 166, 42 billion dollars. Also, over the past day, Bitcoins have been sold for more than 38 billion dollars.