- It has been a terrible year since the inception of the Novel Covid-19 and people are hoping for the best.
- The past few hours have been hopeful for crypto trades, HODLers as the entire community visualized Bitcoin Rally to $9000 mark.
- Previously, BTC was hovering over the $9000 mark in Feb 2020, when it underwent major correction surging to $4k range.
- Analysts believe this is the most obvious pattern they've discovered and Bitcoin tends to follow this pattern often.
Bitcoin Price Rise > $1,000 Intraday is Corrective
Bitcoin started around $7500 mark this week and ended up hitting the $9400 mark yesterday, on 30 April 2020. Since this, in the last 24 hours, it seems that maybe it already started the correction, down by 2% at the time of publishing this. Visualizing data from Cointelegraph and CoinMarketCap, we see trading volumes are enormous across all the crypto exchanges. However, this does not totally point to the long-awaited Bitcoin Bull Run which everyone awaits.
Bitcoin is expected to benefit from increasing global equity market positivity, leading to an overstretched sharp rise in a short period of time. While Bitcoin appears to have changed its trend from bearish to bullish, any decline in conventional markets or negative news associated with the novel coronavirus pandemic could easily lead the crypto market to lose its recent gains.
Markets have been crucial and everyone knows the fact of how volatile cryptocurrencies can be. History depicts that the dramatic gains often accompany dreadful corrections. In particulars, whenever BTC price increased by more than $1,000 intraday, it followed up to a 5% drop in the next week and a maximum of 21% fall in value in the coming month.
These speculations are calculated upon several technical indicators and are analyzed by certain professional traders and advisors.
Proven methods supporting Bitcoin Drop
The price of Bitcoin has jumped past three big reversal trend points as it reached $9,400. It reached the 200-day Simple Moving Average (SMA), the 200-day Exponential Moving Average (EMA), and the 0.618 Fibonacci Retracement point of between $3,600 and $14,000 measured.
Usually, in an intraday step, Bitcoin doesn't cross all three main resistance areas without any sign of a pullback. It leaves the asset exposed to a steep drop when it does, as traders seek to take profit on their positions.
Coming weeks would be super volatile for the crypto markets and major coins are forecasted to be down up to 20% at max looking at the major shifts in the market structure and high trading volumes. Often the market goes from a majority short to a majority long, increasing the risk of a large long squeeze.#bitcoin has has 14 days where it gained $1,000 or more in a day. Here is what happened in the days that followed. pic.twitter.com/PTJdEGxqKY— Timothy Peterson (@nsquaredcrypto) April 29, 2020
A Nigerian scam reason behind the recent Bitcoin $9000 Rally?
A closer look at the google trends charts for bitcoin search query shows high volumes from Nigeria where the news has just come up in which the International Monetary Fund (IMF) announced it has approved Nigeria’s request for “emergency financial assistance” of $3.4 billion under its Rapid Financing Instrument (RFI). This is the first time in history that Nigeria will be obtaining a loan from the IMF.
Now there are lots of speculation been gossiped after this financial assistance was processed. While few are praising the move, some of them are not happy with the national administration and expect the funds to be directed to the needy ones so that the help can be utilized as it should be.The IMF Executive Board today approved US$3.4 billion to help #Nigeria address the severe economic impact of the #COVID19 pandemic and the sharp fall of oil prices. https://t.co/BmFoajYR6q #IMFAfrica pic.twitter.com/XIRYgS2CGC— IMF (@IMFNews) April 28, 2020
Bitcoin is expected to benefit from increasing global equity market positivity, leading to an overstretched sharp rise in a short period of time. While Bitcoin appears to have changed its trend from bearish to bullish, any decline in conventional markets or negative news associated with the novel coronavirus pandemic could easily lead the crypto market to lose its recent gains.