Bitcoin: 50% Drop In March
Bitcoin’s Macro Relative Strength Index(RSI) is showing a drop even after 100% Rally. Bitcoin is rallying from the $3,700 bottom to a local high at $7,470. This drastic change in cryptocurrency convinced many traders. It is also on the edge of entering yet another full-blown bull market. A few traders were signalling, who share with Bitcoin’s long-term RSI readings was suggesting the market has a significant correction on the horizon.
According to crypto trader Eric Thies, the Bitcoin market failed to push BTC’s readings from RSI. However, it is a measure of trend strength, into the bullish territory by the recent rally. Also, by Thies, it shared four charts of Bitcoin’s long-term RSI trends. This is indicating an incoming drop after one last potential surge higher in the coming week.
Parabolic Thies stated that the Bitcoin was expected to be in sync with the potential stock market dump through twitter. Also, by charts, it is referring that Bitcoin’s recent bull trend to $7,470 which was unable to reach an exact breakout point. It is confirmed by the RSI indicator, failing to overcome several resistance levels.
In an Edition of “Crypto Trader’s Digest” by newsletter penned by BitMEX CEO Arthur Hayes wrote that he could expect Bitcoin retest $3,000 if the S&P 500 rolls over and test 2,000. Regarding this thought to the fact that in the global market, the correlation between all assets and approaches to one.
Bitcoin: Corona Virus Effect
Chris Burniske of Placeholder Capital said that all stock market would see another “sell everything” moment across the globe. If Bitcoin did not spare this, then there will be many lows in $5,000s, $4,000 and $3,000 that BTC could reach. Bitcoin bulls are signing about equities which are about to flip bearish after a healthy recovery.
CEO of Financial services firm and fund manager, Scott Minerd wrote in company note that this crisis continues to hamper economic growth due to the ongoing issues of COVID-19. It is causing the stock markets to fall suddenly for another 40%. After some time markets also see data on Unemployment rising, economic growth and contracting of corporate earnings. This leads to another level of panic over stock markets.