Bitcoin price ended the quarter down by more than 10%. Still, enthusiasts are happy that the price outperformed the overall stock market, which dropped by more than 20%.
Bitcoin price outperforms the S&P 500 & Dow
Bitcoin’s price moved the way it did because of several reasons. First, it rose in the early parts of the year because investors and enthusiasts were focused on the upcoming halving season. Halving will half the number of blocks that BTC miners are rewarded, which is a positive thing for the price.
Second, then declined as the rest of the market tanked. The idea is that many investors exited the cryptocurrency to fill margin calls as stocks declined. In addition, as most investors got hammered, it lowered demand for the currency. Third, the price started to stabilize after the Fed started the open-ended quantitative easing program.
Looking ahead, I expect Bitcoin price to recover in April as enthusiasm about halving returns. Looking back, the price of BTC tends to rise a month before halving happens. The last halving happened in 2012 and 2016.
Bitcoin could be humanity’s last & only hope to establish a sound global money & continue the march of human progress. Decentralised, uncensorable, permissionless, hard-capped, privacy-capable monetary technology that liberates us from society’s legacy systems. #Bitcoin pic.twitter.com/78hMzaWOj7
— Tonny Micheal (@BryanSi82539373) April 1, 2020
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Bitcoin Price Analysis
BTCUSD pair, which started to rise on March 13, has hit a roadblock at around 6,980 level. In the past two weeks, the pair has been in a narrow channel between the above resistance and the support of around 5,832. In the mean-time, volatility, as measured by the Average True Range (ATR) has been falling. This could be a calm before the storm and I expect the price to breakout in the upside soon.
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