Bitcoin Rallies Past $8,000 to Make a Full Recovery, Fundamentals Screaming “Buy”
Bitcoin has finally jumped $8,000 level, fully recovering from the losses occurred on Black Thursday. On Bitstamp, BTC/USD went as far as $8,190 and is currently looking poised to move further up.
However, Ethereum is outperforming bitcoin yet again with 6.33% gains trading at $209. In comparison to Bitcoin’s 10.75% returns YTD, Ether is up nearly 60% in 2020 so far.
The market sentiments are still of fear while they have emerged out of “extreme fear” after seven weeks, as per Crypto Fear and Greed Index.
As we reported, market volatility has also gone back to the pre-crash level which is a good sign for the market.
But what’s not good is the declining volume but is stabilizing after recording a surge during the sell-off.
“Bitcoin volume has dropped sharply after the market crashed. Yet, we're still around the same levels as the beginning of 2020 and the volume is now stabilizing,” noted Arcane Research.
Stay calm and plan going into the halving
Having recovered sharply after the “Bloody Thursday” in March, now that we are back to the same levels before the crash, the bitcoin price is now touching both the 200-day moving average and the 100-day moving average.
According to analyst and trader Filb Filb, there is a “ridiculously tight cluster of MAs overhead.” Besides 100 DMA and 200 DMA, there is 20 WMA, Year VWAP, 61.8% retracement, and yearly pivot for bitcoin to endure and yet bitcoin is persisting for more.
The 200 Exponential Moving Average (200 EMA; black) is an important gauge of long-term investor sentiment towards #Bitcoin
If price is below it – people are bearish on $BTC
If price is above it – people are bullish on BTC
— Rekt Capital (@rektcapital) April 29, 2020
Interestingly, Short-term holder NUPL has also entered the hope zone. This is a key moment to watch as staying above this zone has previously indicated the start of bull markets.
Bitcoin fundamentals are also calling a buy with analyst CL pointing out, “8100 wasnt the top because the market is just coming out of a short-biased state, euphoria, and FOMO is yet to begin per Bitmex and OKEx futures basis.”
Looking at pure Bitcoin fundamentals only.
Basically everything screams "buy". pic.twitter.com/hpHGUjYq0m
— Charles Edwards (@caprioleio) April 28, 2020
Obviously, caution is necessary as trader Crypto Michael points out, “events like the halving could trigger an increased level of FOMO by people.”
“However, once people realize that the event doesn’t have an impact short term, sell pressure will also be strong. Stay calm and have a plan going into the halving.”
Now less than two weeks from the highly anticipated bitcoin halving, the discussion around the event has also risen as expected along with the price.
“The interest levels are mostly correlating with positive momentum, meaning crowd consensus is widely optimistic about this event in spite of there being no guarantee of a price explosion (in either direction) at the time the halving finally executes,” noted crypto data tracker Santiment.
However, with the bitcoin production cost around $7,900 that will about double to $15,000, BTC price needs to buckle up or come halving, profitable miners will be forced to dump their BTC and in turn price.