Bitcoin staged an almost 14% recovery yesterday, and as at today has recovered about 45% from its lowest low of the drop.
But seeing a decline and a little dip in prices today, has Bitcoin began to cool down? Has it found a new range? Or is it just taking a rest stop here before rocketing back to its old prices? Let's look to technical analysis to figure this out.
Bitcoin having dumped along with the rest of the world's assets due to people pulling out their money out of fear of this pandemic destroying the entire planet.
Whenever people are scared, they act irrationally. And irrationally is a person giving away a Bitcoin for $3787 because of fear.
But it seems that as the world's economic issues cool down and we start to see things come back to normal, Bitcoin has started to detach itself from traditional markets once more and offer itself up as a safe haven asset once again.
It has recovered about 40% of its losses from the previous weeks, a recovery faster than that of gold, silver and platinum. Meanwhile, the S&P500 continued its decline, moving downward another 0.5% today again.
Bitcoin saw a huge pump in volume following the recovery of the asset over the 5000 mark, and the bulls have been able to sustain the price over the 6000 mark for about 18 hours now.
Should this continue, and the monthly candle closes in between the top and middle Bollinger bands, and is equally green, it would be s crazy bullish signal, upon which I will be willing to bet the farm.
Should the opposite be the case though, and we close with a red bearish candle signifying that the asset was unable to stage a full recovery, I would still bet the farm. But this time, I'd bet it on the asset testing new supports that we haven't even seen yet.
As always, take technical analysis with a grain of salt, and always do your own research to find out what works best for you.
Thanks for reading.