Once Bitcoin Finds the Bottom, There Are Strong Bullish Pressures Ahead :On-chain Analyst

  • Bitcoin price nearing $6,000 but pain might not be over
  • Crashing confidence in banking and trillion-dollar wealth passed over would push BTC higher
  • But bitcoin only existed inside a “macro bull market,” so be cautious of the “unknown unknowns”

Yesterday, the price of Bitcoin saw a jump, unlike the stock markets that continue to tumble. US futures and Asian stocks sank on Thursday despite a slew of dramatic steps unveiled by policymakers worldwide to cushion the blow by the coronavirus. The stock futures recorded a brief spike when the European Central Bank announced an emergency $821 billion stimulus to keep the financial system moving.

Bitcoin meanwhile, is trading at $5,456, up 4.82%, with $1.6 billion worth of bitcoin exchanging hands in the past 24 hours.

Stocks and many currencies took a beating on Wednesday as another sell-off cast doubt on the ability of the global central banks to ease cash shortages. Today stock-market benchmarks in South Korea, Hong Kong, Taiwan, and Australia slid down to their lowest levels in a year while a strong US dollar is pushing regional currencies to multi-year lows. Analysts at UBS Global Wealth Management CIO said,

“In the absence of credible signs that infection numbers in the western world can be controlled, volatility is likely to remain elevated.”

Bitcoin Looking for Bottom

Since yesterday, Bitcoin has been moving in the opposite direction of the global stocks that are plummeting after moving in line with them for the past month. Even today, the crypto asset is surging, ready to take over $6,000.

According to on-chain analyst Willy Woo, Bitcoin will moon after the dump as the market is currently piling into cash. This means, more pain could be ahead for the world’s leading cryptocurrency. Woo said in a tweet,

Since the beginning of 2020, the Dow Jones US banks’ total return index has plunged over 39% with some bank ETF indices down up to 45%.

What will tip the market into bull mode is the trillion-dollar wealth passed over from boomers to millennials, who are more interested in bitcoin than gold and many other top investment choices like Microsoft, Amazon, or Netflix. The analyst noted,

However, the analyst advised taking caution about bitcoin, in its young 10-year history it has only existed inside a “macro bull market.” The crypto industry has zero data on how it will behave in a macro bear market, which is “the known unknown. I wonder about the unknown unknowns.”

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Author: AnTy

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