Bitcoin may take months to take its bullish position again, says the top analytical firm. However, the leading asset starts recovering, but it corrected slightly, making a good move of 14% in a single day.
Last week proved very drastic for the Bitcoin as it witnessed lows in the year to date amid COVID-19 panic. On its slight flight in upward direction influences crypto markets resulting in investors’ confidence on Bitcoin as a safe-haven asset.
Bloomberg reports that the technical strategist at Fundstrat Global Advisors LLC states that both bitcoin and other traditional assets performed similarly under the pressure of Coronavirus. Rob Sluymer further said that digital gold did not act as the crypto community expect from it to perform as a safe-haven asset during such panic conditions.
Rob Sluymer said:
‘’The crypto breakdown over the past week mirrored the ‘get me out of everything’ panic that dominated all asset classes, whether they were defensive (bonds and gold) or not (equities). Lower highs and lower lows are in place for Bitcoin, leaving in a compromised, potentially vulnerable longer-term profile.’’
Fundstrat’s chartist expects from Bitcoin to show some potential in the next coming months. While giving a scenario about the BTC’s future price, he proposed that it will take months to manage its loss.
‘’For now, technically we will again give Bitcoin the benefit of the doubt that it is attempting to bottom but recognize Bitcoin will likely need months of consolidation to repair the technical damage now in place,’’ he added.
At press time, the leading asset marks the bullish move of 14% in the past 24-hours. The reach to $6,000 is crucial to take a good start for proving its existence as a standard asset amid turmoil in financial markets worldwide.
The head of business development at crypto exchange Luno, Vijay Ayyar, said:
‘’There was a lot of buying pressure sub-$5,000 as can be seen and clearly indicates seller exhaustion. These prices were potentially below running cost for many miners, and we’ve seen hash rates drop. Miners are also better off just buying Bitcoin at such prices so there could be that aspect as well.’’