Bitcoin is back in the green, recording the gains of 3.14% in the past 24 hours while volume on the top ten exchanges with real volume remains above a billion.
As Bitcoin turned green, altcoins also registered gains but not as much as Bitcoin except for the likes of Digibyte which is up 10.83%, CRO 9.36%, Verge 8.86%, Horizen 7.39%, and IOTA 4.42% among others.
Bitcoin might be seeing gains for now but commentators are predicting negative price action in the short term.
The world's leading cryptocurrency has a demand zone in $5,900s. According to a popular trader with the pseudonym Bitcoin Jack, “For now, this is an interesting price level. If we close with an SFP (>6060) I will add margin to my 4500-4800 longs.”
Also, the record volume suggests, “weak hands cleaned.”
Clean picture of spot exchange and on-chain volumes pic.twitter.com/ZPkFRJIrgC
— //Bitcoin 𝕵ack 🐐 (@BTC_JackSparrow) March 30, 2020
BTC price to take yet another hit?
Interestingly, Bitcoin futures are currently trading $1,500 under the level on spot exchanges, which is “exactly the opposite situation,” to the time bitcoin got down to its bottom and we went to a $1,500 backwardation, a situation where the price of a commodity futures contract trade below its spot price, said the trader with the pseudonym Ugly OldGoat.
The trader is expecting a “prolonged” bear market for six to nine months adding that “Competition is going to be on the Bitcoin Standard. It won't be constipation between Crypto Currencies.”
Flashback: June 2019 when $BTC hit $13,800 – "I didn't think it was possible to drop back down to $3,000 but I do now" –@UglyOldGoat1 – "I can see a prolonged #Bitcoin Bear Market for 6-9 Month"
For full video 👇 https://t.co/EllkLEpEHl pic.twitter.com/fOTjdFgOT6
— Tone Vays – TheFinancialSummit.com (@ToneVays) March 28, 2020
Structurally we could into a bear market, as the trader explained,
“we went to the big contango when we went for $500 over the spot it became very attractive for the commercial interest to sell Bitcoin and the smart ones were, they sold it all the way up from $11,500 up to $14,500 and they've locked in their profits for the year which is really healthy for Bitcoin because you know we don't have to worry about the miners making it this year. If this market fizzles and goes back down and test lows again at $3,000 they're gonna be just fine.”
The ones that definitely have to be concerned are the speculators, he said.
Another trader who is expecting a bearish scenario before the halving is FlibFlib who sees the price of the flagship cryptocurrency going below $4,000 at the end of April.
— f i l ₿ f i l ₿ (@filbfilb) March 29, 2020
Bitcoin must rally or crypto in big trouble
Bitcoin has been trading like a risk-on asset, trailing stock markets, which have turned mixed today yet again. Volatility continues to control the financial markets as COVID-19 pandemic rages on. While US Treasury yield tumbled, Brent Crude oil price went below $20 a barrel, the lowest level in 17 years.
Investors are currently weighing the toll from the virus against policymakers' efforts. On Sunday, Treasury Secretary Steven Mnuchin said workers can expect their direct checks from the $2 trillion stimulus package in about three weeks. Also, President Trump said the social distancing guidelines will remain through April 30.
Coronavirus cases meanwhile climbed over 732,000 globally, as per Johns Hopkins data. In the US, the number of cases rose above 143,000 and death over 2,000. Dr. Anthony Fauci, director of the National Institute of Allergies and Infectious Diseases, believes the virus could claim as many as 200,000 Americans’ lives amidst “millions of cases.”
This crisis according to veteran trader Peter Brandt, is the “perfect storm” for Bitcoin and if the digital asset “cannot rally on this, then crypto is in BIG trouble.”