The U.S. Federal Reserve says they have “infinite amount of cash” — what’s the impact on bitcoin?
Why BTC will drop to $5,000
A “death cross” formed on the BTC price, a top-down intersection of 50-day and 200-day Moving Average. This will lead to a price drop down to $5,000, Coindesk analyst Omkar Godbole thinks.
However, the drop will not happen immediately: for example, in the spring of 2018 the “cross”, bitcoin price first went up by 50% in a month, and then declined by 70% within six months.
The scenario will be cancelled if BTC can consolidate above $6,460, the analyst writes. Godbole also notes that similar crosses are forming on the Dow Jones Industrial Average and S&P 500 industrial charts.
Peter Brandt: Bitcoin price will drop by 50%
Well-known trader Peter Brandt believes that BTC will drop below $3,000. Responding to a comment on Twitter, Brandt posted a chart with a “descending flag” figure — if implemented, the price will go to the level of $2,700.
The trader also indicated that having declined below $7,500, bitcoin price broke the long-term support line and moved into a downtrend. Earlier, the analyst said that bitcoin will drop to zero after breaking this level.
Opinion: cryptocurrency will benefit from the crisis
Unlimited amount of U.S. dollars will positively affect bitcoin, trader Joseph Young believes.
“Fed printing unlimited money to pump markets = good for bitcoin
Devaluation of dollar over the long term = good for bitcoin
Short-term may be gloomy for bitcoin, but long-term prospect of it remains very bright,” Young tweeted.
A similar opinion is shared by Stack analyst Lennard Neo. He expects an influx of capital into cryptocurrencies due to the uncertainty central banks and governments actions amid the crisis.
CEO of Titus Investment Advisors Justin Gillespie notes that quarantine will strengthen the position of cryptocurrency. According to him, “The longer the people can’t go outside to conduct their business, the more useful the cryptocurrency should become as it can be sent and received from the safety of one’s home.”