Friday, March 6, 2022

Bitcoin price analysis: BTC Reverses from Feb 2020 Lows as bulls aim at $9,500

Bitcoin price analysis: BTC Reverses from Feb 2020 Lows as bulls aim at $9,500

The global economy looks set for a meltdown. The stock market is literally crashing as investors are forced to flee to safe havens.

Central Banks and the US FED Easing

Cash was an option, especially the USD. But the Federal Reserve decided otherwise, and so like the Bank of Canada, and most probably the ECB, Jerome Powell slashed rates by a massive 50 basis points, or 0.5%, the largest single cut since the Great Financial Crisis of 2008-09. President Donald Trump is not satisfied and calls for more cuts. But whether the FED will push that to negative territory, only time will tell.

This is the way central banks are responding in the wave of turbulence made worse by coronavirus which is threatening to be a pandemic.

Flight to Safety

As panic grips the community, Bitcoin and cryptocurrencies are steady and may rebound back after initial shocks.

Bitcoin is steady and despite acting more like a high-risk asset than a safe haven thanks in part to wide price fluctuations, the coin’s inherent properties as censorship resistance and fluidity means it is a coin of choice for doomsday preppers and risk-off investors. Simply, Bitcoin is immune to fear.

Bitcoin Hash Rate to new Highs

Already, two-months to halving, the network’s hash rate is up, at new highs of 137 EH/s.

This shows the willingness of enthusiasts to channel more computing power to the network ahead of an emission shock scheduled for May 2020, and the high chances of BTC rivaling gold as a safe haven in years to come.

BTC/USD Price Analysis

At the time of press, BTC is trading is above $9,000, this is a few days after the coin dropped to below $8,500.

Fundamentally, part of this could be driven by risk-on nature of the asset and its ability to “store” value despite price fluctuation.

And this demand has been reflected on the chart. Notably, BTC is bouncing off from February lows and buyers are building on March 2 uptick.

Overly, the trend is bullish but for trend continuation, it is preferable that bulls drive prices above the 20-day moving average and back above $9,500.

If there is a volume spike exceeding those of Feb 26 as prices bolt above $9,500, aggressive traders can buy the dips and aim for $10,600 with expectation of BTC printing a new 2020 high.

On the flip side, any drop below $8,500, that is, February 2020 lows, BTC may side to Dec 2019 highs of $7,500-800.

Chart courtesy of Trading View-Coinbase

Disclaimer: Views and opinions expressed are those of the author and is not investment advice. Trading of any form involves risk. Do your research.

The post Bitcoin price analysis: BTC Reverses from Feb 2020 Lows as bulls aim at $9,500 appeared first on Crypto Economy.

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