Famous trader PentarhUdi has accurately predicted the move from $ 10,000 to $ 6,000 and multiple Bitcoin market cycles over the past few years. believe BTC is headed for $ 8,500.

When the price of Bitcoin hit $ 5,200, the trader said that the top cryptocurrency is likely to move back to the 200-day simple moving average (SMA) above $ 8,000.

$ 8,500 goal in line with boom Fed fiscal policy

Over the past 24 hours, BTC / USD has risen more than 8.47% after Federal Reserve Unlimited quantitative easing (QE).

Fed say they will not hesitate to buy US government bonds and mortgaged securities. The Dow futures index jumped more than 800 points when it opened, as stimulus packages from the Fed eased pressure on the stock market.

On March 19, when prices were still trading below $ 6K, Pentarhudi predicted that BTC would recover up to $ 8,500 after hitting a simple 200-week moving average at $ 5,200.

Bitcoin price is expected to rise sharply after regaining support of $ 5,200. At the same time, the macro trends of the broader financial markets lead to a positive sentiment towards cryptocurrencies.

Trader positive:

Price will increase from the 200 SMA weekly (~ 5,200 dollars) to the SMA 200 daily (~ 8,500 daily). Break the trend line above will disable the steps reduction this. Note here is the assumed discount result from ideas are announced before”.

On February 10, when Bitcoin price fluctuated above $ 10,000, Pentarhudi predicted a pullback of $ 5,800 as the next reasonable target in Bitcoin's historical cycle. And the reality is that prices fall even more than this when panic takes place in global financial markets.

“If this idea is correct, the price will drop from current levels to MA 200 weekly for 1-3 months. Breaking the dark red line above (now or later) will open bull run prolonged. The price rises long term while it stays above MA 200 weeks. ”

In the short term, both stocks and Bitcoin are expected to recover strongly as a result of major stimulus packages in the United States and Europe.

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Bitcoin price reduction scenario | Source: Pentarhudi

So what happened next?

With the bearish scenario, Pentarhudi expects Bitcoin to see a new low below $ 3,000 if it is rejected at $ 8,500.

Traders' technical analysis is in line with fundamental analysis of senior investors like Chris Burniske, arguing that Bitcoin is facing a tougher 2020 than 2015.

“For many reasons, 2020 is more difficult than 2015. And let's face it, the world has bigger problems than Bitcoin. But the next really strong support that I see is the last bottom (low of 3,000 dollars). Futures contracts are bought here in bulk last Thursday and if there is more bad news for the world, BTC is unlikely not involved”.

Since the price dropped to $ 3,600, most of the cryptocurrency market volume has shifted from futures exchanges to the spot market. After this change, the resilience of the Bitcoin price increased.

Congress exchange with the Fed about Digital dollar to fight crisis

The House Democratic Party proposed two bills on creating digital dollars and digital wallets, so that the Federal Reserve could transfer digital money directly to individuals. personal and business. The move is intended to support the economy in the context of the COVID-19 pandemic, as the United States is second only to China and Italy in the number of confirmed cases.

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The drafts are “Law about responsibilities for workers and families, “”Law protect and financially support the United States' consumers, states, businesses and vulnerable populations. ” According to the authors of the act, the Fed will use dollars and digital wallets to transfer money to “eligible individuals”, specifically $ 1,000 for minors and $ 2,000 for adults.

Both draft documents use the same definition for the digital dollar:

The term ‘digital dollars’ means balances denoted in dollar value including digital ledger entries recorded as debts in the accounts of any central bank; or a valuable electronic unit, converted by a qualified financial institution (as determined by the Board of Governors of the Fed).

This law may be supported by Congress and the Fed will not have to think much because it has previously admitted it is thinking of issuing a digital currency.

Fed pump unlimited cash; stocks, Bitcoin have react

Yesterday, the Fed surprised the market when declare Unlimited support for the economy. In addition to buying more bonds and mortgaged securities, the central bank will also buy corporate bonds and exchange-traded funds (ETFs).

Johnny Fine – Head of Investment Grade Bonds of Goldman Sachs shared with CNBC:

“This is an unprecedented Fed action.”

“Wow. The Fed will buy ETF investment bonds like LQD, VCIT, SPIB (perhaps). These funds have diversified and liquidity but the demand for basic bonds has weakened. This is a whole new world. ”

The Fed will buy corporate bonds under a program called the Secondary Market Corporate Credit Facility.

The Fed's unlimited quantitative easing has boosted the stock market, encouraging many institutional investors to keep an eye on other assets, including Bitcoin.

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China has almost defeated COVID, cure Potential tested worldwide

China has reported no new local cases for several consecutive days, although the number of entry cases has increased. At the same time, businesses in many areas are reviving. However, many people are skeptical of China's report and fear Immigration cases will cause another wave.

A new ray of hope is the anti-malarial drug, hydroxychloroquine, recently introduced by US President Donald Trump. This drug has existed for more than 70 years, successfully used against COVID-19 in many hospitals in China, Korea and France.

However, many experts warn that this drug and its chloroquine precursor have not been officially approved as a COVID drug. Moreover, some people have suffered poisoning and even died because of an overdose by taking chloroquine after Trump's comments.

Although this drug is known to have serious side effects, especially when used in the wrong dosage, many trials have been begin in Europe because this is one of the few methods that shows impressive results against the new Corona virus.

You can see the price of BTC here.

Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Minh Anh

According to AZCoin News

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