Bitcoin price rose yesterday as optimism returned into the market. The price crossed the important level of $7,000 before making a slight pullback.
There was no specific reason why Bitcoin why the price rose. Some believe that the price rose after the Fed published its balance sheet, which showed that it was printing billions of dollars every week as Roy Sebag pointed it in Twitter:
Weekly Federal Reserve Update: $550 billion printed this week. That’s 5x annual gold production (before shutdown) or 4.5x the entire market cap of bitcoin. This isn’t going to stop until political and economic leaders adopt a philosophy of money.
— Roy Sebag (@roysebag) April 3, 2020
Other traders talked about halving, which will happen between May and June. Halving is the process in which the amount of Bitcoin that is handed to miners is cut into half. As I wrote recently, history suggests that the price of Bitcoin has risen before having happens. The previous two halvings happened in 2012 and 2016.
From the 2nd halving in 2016 to the top of the 2017 price peak ($19,400), the Bitcoin price jumped ~29X.
Prior to the last halving, Bitcoin is up 1,570% today and the next halving occurs in less than 40 days.
29X from here would put a single #Bitcoin at $200,000.
— Bloqport (@Bloqport) April 3, 2020
Another likely reason is that many investors believe that the price of Bitcoin, which dropped to below $3,300 in March has already bottomed.
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Bitcoin Price Analysis
The BTC/USD pair rose yesterday to a high of $7,230 while volatility, as measured by the ATR rose. As the BTC/USD pair rose, it crossed the important resistance level of $6,875. On the hourly chart, the pair is above the 14-day and 28-day exponential moving averages. The pair will remain bearish if it moves below the (now) support of $6875.
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