Bitcoin (BTC) bulls are on yet another push to breach the evasive $7,000 USD mark since the “Black Thursday” crash on Mar. 11, whereby BTC along with the rest of the crypto market lost between 40% and 50% of their value. Currently trading at $6,676 USD, BTC/USD represents a small 3% increase in the past 24 hours, signaling a possible breakout on the daily charts.
On the flip side, the short term analysis charts signal a possible reversal back to the $6,100 USD level – a key support level that threatens a capitulation back to $5,000s if broken. Similar views are shared by crypto analyst Forbes, Joseph Young, who believes the long term fundamentals on BTC remain in place to set a bullish momentum on the coin.
Analyst: “Short-term may be gloomy for bitcoin”
While the current COVID-19 pandemic continues to affect the stock markets across parts of the world, BTC has rebounded rather soon from the collapse to $3,600. However, Young believes the near term price of BTC is set to drop further despite recent gains.
He wrote on Twitter,
“Short-term may be gloomy for bitcoin…”
This is easily complemented by the hourly charts that signal a possible formation of a double top formation. The BTC/USD price bounced off the $6,800 USD mark in the early hours of the US trading session on Tuesday, Mar. 24 signaling a possible drop towards the key $6,100 USD level.
A breach below the support will effectively signal a start of a bearish momentum following two bullish days that set the top crypto on a 20% increase.
BTC/USD spikes 5% crosses the SMA-200 at $6,800
Not all hope is lost. Young said the long term fundamentals behind BTC’s growth remain on track with the recent pumping of financial stimulus by governments providing yet another reason why BTC will grow in the long term.
Fed printing unlimited money to pump markets = good for bitcoin
Devaluation of dollar over the long term = good for bitcoin
Short-term may be gloomy for bitcoin, but long-term prospect of it remains very bright.
— Joseph Young (@iamjosephyoung) March 24, 2020
On the daily charts, BTC/USD is finding comfort just below the SMA-20, which if crossed gives a very bullish signal in coming days. Furthermore, the price is holding out above the $6,400 USD level which provides key support.