The value of bitcoin (BTC) is as soon as once more seeing sturdy good points within the crypto market as we speak, after hovering to ranges not seen since earlier than crypto’s “Black Thursday” on March 12, and once more positioning the asset above a key technical degree within the chart. (Up to date at 14:50 UTC, when BTC trades at USD 8,338: updates in daring.)
As of press time (11:40 UTC), bitcoin is up by 4.55% to a value of USD 8,150. The value implies that the primary cryptocurrency as we speak has lastly damaged above the 8,000 mark, which occurred to additionally coincide with the extensively adopted 200-day transferring common degree. If the value closes above each of those ranges, technical evaluation means that bullish momentum is powerful and that additional good points could also be forward of us.
Following the most recent value good points, bitcoin has now recovered all of its losses from the extreme decline on March 12 and 13, sometimes called crypto’s “Black Thursday,” which introduced it down almost 50%. That is clearly additionally an vital psychological milestone for the market, given earlier feedback from distinguished traders like Mike Novogratz that bitcoin must “rebuild confidence.”
The #bitcoin value has recovered sharply after “Bloody Thursday” in March and is again to the identical ranges as seen be… https://t.co/n9MvwIr40O
The price gains in bitcoin were also accompanied with strong performance in several other major cryptoassets, such as ethereum (ETH) and bitcoin cash (BCH), which were up by 5.2 and 4.6%, respectively, over the same time period.
Despite the currently optimistic sentiment in the bitcoin market, however, some also point out that the price moves in bitcoin may be more closely correlated to the traditional financial market than bitcoin proponents like to believe. For instance, Bloomberg editor Joe Weisenthal noted today that “Bitcoin continues to basically track S&P futures,” although with a “higher beta,” meaning volatility.
Bitcoin continues to basically just track S&P futures. (Higher beta though) https://t.co/0yWrj7zn2M
Whatever the case may be, it is clear that today’s bitcoin strong rally has by far outperformed the stock market, with S&P 500 futures currently indicating an open a mere 0.88% higher.
“The Bitcoin halving in under two weeks may explain some of the bullish activity by speculators,” Craig Erlam, senior market analyst at Oanda, wrote in a note, quoted by Bloomberg. “But you have to think that an event that has been in the diary for so long will already be priced in. This could see some of these moves faded as we hit halving day.”
Meanwhile, Christel Quek, Chief Commercial Officer and Co-founder at Bolt Global, told Bloomberg that while BTC should rise into USD 10,000s after the halving, it could be followed with a price drop as investors engage in profit taking as “no level of technical support can stand when the economy is drained.”
“The impact of COVID-19 so close to the halving and bitcoin’s correlation to equity markets means we may not see significant surges in price due to the halving,” Charles Hayter, co-founder and CEO at CryptoCompare, added.
Learn more: 10 Crypto Minds Weigh in On Post-Crash Bitcoin and Its Future
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