P95G Market Weekly Report — Week of 03/15/2020
The Bitcoin price was unable to hold the $8,470 support that was mentioned last week. It fell below $4,000 and erased the gains from the rally that started back in April 2019. It rebounded and settled at $5,200.
The hourly chart showed a flag and pennant pattern when the BTC price took a dive from $7,200 to $5,578 and then $6,091 to $4,550. The volatility has gone down since then. The price is expected to go sideway between $4,700 and $6,000. There is upside potential if the price breaks above $6,000 and can reach $7,000. Due to the recent market volatility, a long position should be paired with a stop loss at $4,990.
Review of the week:
Veteran Wall Street trader and cryptocurrency analyst Tone Vays, a long-term Bitcoin bull, is weighing in on the leading cryptocurrency’s perilous price action. Vays has issued warnings for months that Bitcoin would undergo a major pullback before gearing up for its next long-term bull run, that is back in November of last year, Bitcoin would likely break below $7,000 before May of 2020. In his latest video on the state of the markets, Vays now cautions crypto traders that Bitcoin could sink even lower, despite its recent plunge, below $4,800 before the bear market ends.
Co-founder of Morgan Creek Digital and noted crypto-personality Anthony Pompliano is of the opinion that Bitcoin is just following the pattern laid out by gold in terms of price fluctuations. Referring to the situation as a ‘liquidity crisis,’ he noted that the volatility is exploding with increases levels of illiquidity in the USD market, that is because Bitcoin has a liquid market and investors needed liquidity over anything else thus the selling happens. Putting things in perspective, Bitcoin’s price fall is seen as a regular pattern by many in the industry. While the digital gold narrative is strengthening, non-crypto enthusiasts are now forming a line to buy Bitcoin. The former National Security Agency agent Edward Snowden, in a recent tweet, “This is the first time in a while I’ve felt like buying bitcoin. That drop was too much panic and too little reason.”
Disclaimer: The above market commentary is based on technical analysis using historical pricing data, and is for reference only. It does not serve as investment or trading advice.
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