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- After the sudden drop of Bitcoin to $6,000, many people expected Bitcoin to rise back to the situation and prove the reason for its inception.
- Bitcoin has reached the value it had in the first week of March.
- The daily volume of the CME bitcoin futures contract is down 83% from March peak ($595M to $101M).
After the sudden drop of Bitcoin to $6,000, many people expected Bitcoin to rise back to the situation and prove the reason for its inception. Assuming that the blockchain based cryptocurrency, the first of its kind would actually be doing well, traders and exchanges aren’t probably as prepared for what is about to come.
THE EXPERT TALKING
Joseph Young is a tech, financial and bitcoin journalist based in Hong Kong.According to his latest tweet, Bitcoin has reached the value it had in the first week of March. Young states that The daily volume of the CME bitcoin futures contract is down 83% from March peak ($595M to $101M). He speculates that with a lot of sell orders piled up at high $6,000s and U.S. stocks falling again, short-term looks gloomy.
The daily volume of the CME bitcoin futures contract is down 83% from March peak ($595M to $101M).
Spot exchange volume is also noticeably down since early March.
With lots of sell orders piled up at high $6,000s and U.S. stocks falling again, short-term looks gloomy.
— Joseph Young (@iamjosephyoung) March 28, 2020
REPORTS AND SPECULATIONS
According to a report shared by a cryptocurrency trader, the order book of the bitcoin perpetual futures contract on BitMEX shows a massive imbalance between buyers and sellers, with sellers evidently in firm control over the market.
The overnight drop in the bitcoin price led to the rejection of two major resistance levels: $6,900 and $6,400.Before the sudden drop, prominent cryptocurrency technical analyst Cred said that the bitcoin price was retesting weekly resistance. Historically, when the bitcoin price tested a key resistance level with low volume and non-existent buying demand, it often reacted with large drop.
THE FUTURE OF BITCOIN
Many prominent analysts have argued that there is a 72 percent likelihood Bitcoin will surge past $10,000 Mark. Although data from IntoTheBlock’s Data Scientists reveals that such an ascending movement can’t be foreseen in near future. Going by the money model of Global In/Out, there are around 3.2 million addresses with 2 million BTC with an average price of $6,750. Although, the most significant supply barrier ahead of Bitcoin, ranges between $7,600 and $9,700, nearly 6 million addresses are holding roughly 4 million BTC at that range.
