After experiencing its worst single-day loss in five years, Bitcoin price seems to be recovering rapidly. Currently, BTC is on the uptrend after pumping by over 10% in the last 24 hours to reach its current value of over $6,000.
March 19, 2020 | AtoZ Markets – After a brutal show last week that saw Bitcoin price drop 50% in a 24-hour time span, the bulls are fighting back. Over the past four hours, the BTC price has rallied approximately 10% to a price as high as $6,200. The coin has surged from the $5,400 level where it spent a majority of Tuesday and Wednesday.
Bitcoin price recovers from $4,121
Despite suffering significant losses all through the past week and earlier this week, Bitcoin now seems to be recovering somehow after climbing up from intraday low of around $4,121 in less than seven days.
The asset’s rally comes as traditional markets, specifically the American stock market (indices S&P 500, Dow, etc.), have started to mount a recovery after a brutal start to the week. In fact, the Dow Jones is up 6% from the lows on Wednesday, which coincided with a local BTC bottom. This is an indication that there is a correlation between Bitcoin and the stock market for the time being.
What caused Bitcoin’s recent bearish trend?
Based on the most recent Chainalysis market report, Bitcoin’s recent bearish trend was caused by an “unprecedented increase in sell pressure.” However, all this pressure might be easing for now. Between March 12 and March 13, crypto exchanges got almost a 9X spike in sell pressure.
Nonetheless, the amount of Bitcoin that is headed to exchanges has now reduced to about twice the average. Also, the average size of transfers moving to exchanges has now decreased significantly since March 13. This shows that whales, institutions, and many other large holders are easing up. That could be the reason behind the current recovery in the market today.
Nevertheless, the uptrend in the Bitcoin price will continue unless the economy falters once more.
Do you think Bitcoin price will continue the bullish trend? Share your thoughts in the comment section below.