For the past one or two days, the Bitcoin price continued to show strong signs, rising as high as $ 6,800 on Tuesday afternoon as the global market started showing signs of recovery after weeks of price action.
As of now, the BTC price is at $ 6,600, up 73% from the bottom of $ 3,800 and up more than 20% in the past five days. While many say this is just a short rally before going back to $ 5,000, where Bitcoin is likely to accumulate, there is a bottom model according to the textbook BTC is following, suggesting that the rally The protest has not really started.
Bitcoin continues to follow an important bottom pattern
Bitcoin followed the textbook bottoming pattern – the BARR bottom can be found in Thomas Bulkowski's Encyclopedia of Chart Patterns.
This pattern is marked by a number of price trends: 1) a downtrend leads to a large, vertical sell-off; 2) a bottom pattern shows price consolidation for the aforementioned downtrend; 3) a rally that crosses the downtrend line is formed in section 1); and 4) a return to the trend line before a higher level makes the bottom even farther.
Interestingly, the pattern took place several days later, with a trader recently sharing the Bitcoin price chart below, suggesting that it is currently entering the fourth stage of the BARR bottom, which will be followed by the soaring past a peak of around $ 9,000 a week or two, that means the entire correction can be reversed in a short time.
This pattern is particularly noticeable because it was the bottom mark pattern in the previous bear market, which appeared in 2018 and early 2019. Indeed, if you drag a chart from November 2018 up to High in June 2019, you will find that price action fits into the almost perfect textbook diagram, covering all phases.
Of course, there is no guarantee that Bitcoin's price action will follow this textbook model again. Although history doesn't repeat itself, it often rhymes.
This is not the only strong sign for BTC.
On basic principles, White House economic adviser, Larry Kudlow, believe The US Government's stimulus package will be worth about 6 trillion dollars.
Dan Held, director of business development at the Kraken exchange, said:
“The stimulus package worth 6,000,000,000,000 USD is for one country only. And why don't you think Bitcoin can reach a market cap of $ 2T? ($ 100k / cent) ”.
$ 6,000,000,000,000 stimulus package for just one country.
And you don't think Bitcoin can reach a $ 2T market cap? ($ 100k / coin)
– Dan Hedl (@danheld) March 24, 2020
While no stimulus package will go straight to Bitcoin, analysts believe that this amount will significantly boost the value proposition of Bitcoin and other cryptocurrencies.
Not just Bitcoin and crypto, Fed stimulus packages will also have a positive impact on gold, a safe haven asset.
According to the report of B.Riley FBR Investment Bank, the world gold price will increase to 2,500 USD / ounce (equivalent to 71 million VND / tael) in Q3 and trade around this milestone until Q4.
Analysts said the main driver was not a potential deep-seat recession or another major decline in the stock market, but an unprecedented fiscal and monetary stimulus. These effects are likely to occur in the same period of 2009 – 2011 and push gold prices to new highs.
Gold will benefit greatly from the price increase once the economy begins to return to normal after the Covid-19 epidemic. The current macro environment has been oriented to push gold prices to $ 2,500 / ounce. During the rally, gold will be the best performing asset and gold-related stocks will perform best.
You can see the price of Bitcoin here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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