Bitcoin Market Currently in ‘Fear’ But Don’t Try to Predict What’s Gonna Happen Next
Bitcoin will do what bitcoin does. And if anyone tries to bet on the digital currency’s next move, it will prove you wrong. We have seen how the calls of “bitcoin never going below X” have ended up pushing the digital asset to do just that.
Just this week, many were calling this $10,000 to be the last test and that the flagship cryptocurrency won’t move below it again. The very next day bitcoin crashed almost 10% to $9,150 and $8,600 on BitMEX and we are now back to testing the important $10,000 level.
Another such incident was seen this week, when Galaxy Digital CEO Michael Novogratz bet dinner on bitcoin’s next move to be higher to Arthur Hayes, BitMEX co-founder and CEO after he asked “Which way we gonna go?” while BTC/USD was trading at $9,800, up 2.31%.
Less than 24 hours later, bitcoin is trading at $9,690, down 0.44% with the ‘real’ volume of just $1.7 billion.
CNBC’s bitcoin calls have been famously known for eliciting such behavior in bitcoin and worked as a contra indicator to its price movement.
Nothing is more bullish
Bitcoin might be moving downwards today which has some people panicking but it is an “important technical step for BTC,” said analyst Rekt Capital.
“Price is trying to retest $9650 as support. For most of May – Bitcoin has failed to do so. Here's the 5th try this month.”
Market analyst Benjamin Blunts is also feeling “pretty bullish” with the “continual SR flips that keep getting bought back up in one 15 minute candle.”
This is him going long on BTC but he also cautioned that if the cryptocurrency dumps now, it “will be filthy.”
Another bullish call is made by trader The Cryptomist who points out how each bitcoin dump is being bought quickly is a bullish sign and should the ascending triangle break up as it normally does, we could even get to see $11,000.
Interestingly, the market sentiment is currently of fear based on the S2F model value, which might mean it is an opportunity to be greedy.
— PlanB 🔴 (@100trillionUSD) June 5, 2020
Not to mention, the bitcoin network continues to grow.
The daily active addresses of bitcoin, unique addresses transacting on the network, are now getting close to a six-month high of 1.01 million.
Another dose of bullishness is the “beginning of the end for govt bonds as a functioning productive asset class.” And according to Dan Tapiero, nothing is more bullish for bitcoin or gold.
Interestingly, in the week of April 27 to May 3, the US bond fund market saw a record inflow of $22.5 billion, the highest since 2007, as investors shift out of safer options to riskier long-term options.
Despite carrying high risk compared to safe-haven money markets which lost $36 billion in the same week, the bond market is attracting investors.
This week, 10-year US Treasury yields also rose above 0.80%, highest since late-March, as bond traders grew increasingly optimistic about economic recovery.