Bitcoin could plunge to $ 1,000 amidst a sudden liquidity crisis








Since the dark Thursday with Bitcoin hitting a bottom below $ 4K, the number one cryptocurrency has been limited in scope with strong resistance at $ 6,800.


Although there has been a definite increase since the recent bottom, some analysts expect prices to breakdown as a pandemic devastates the global economy.


Bitcoin is under pressure from broader economic factors in a short time


Currently, Bitcoin is trading at $ 6,911, up 3.74% in the past 24 hours, very similar to high-cap altcoins like ETH and XRP.


For the past 3 weeks, Bitcoin has faced strong resistance at $ 6,800. Notably, this level was rejected in 4 times.


bitcoin 1


Daily Bitcoin chart with 50-day MA and 200-day MA Source: Tradingview.com


On top of that, the coming months seem to be extremely discounted for Bitcoin. According to the Intuit Trading, Elliot Wave analysis shows that BTC is currently in a state of downward correction.


This led BTC to retreat deep on the C wave, potentially only $ 1K at the end of November.


bitcoin 2


Source: Intuit Trading


Intuit Trading contends that this situation worsens economic conditions. As a result, the crisis deepened, many people lost their jobs and property values ​​continued to decline, which means that flights to cash will accelerate.


“This includes holders of cryptocurrencies. Cryptocurrency inevitably liquidity crisis. Ccough until the liquidity returns with Large volumes, BTC may be heading towards 1,$ 000 in November. ”


Game over for BTC?


Even so, it's important to note that Intuit Trading still raises long-term prices for the future of Bitcoin. Indeed, based on the above situation, after 2022 is expected to be a period of strong price increases.


"This is not a death sentence for BTC or cryptocurrencies and will simply be the biggest adjustment ever made."


On top of that, the recent stimulus may also be another important factor that is beneficial to Bitcoin in the long run.


The actions of the government and the central bank have brought unprecedented levels of stimulus. Sadly, mainstream media continues to ignore the impact of pumping trillions of dollars into the global economy.


But one person who is not afraid to speak his mind is John McAfee. He went on Twitter to share his prediction about crypto and insisted the stimulus would cause hyperinflation. It will benefit cryptocurrencies, especially private coins, when people scramble for safe havens.



“How will Covid-19 affect the economy, and in particular…


Cryptocurrency?


Quarantine devastates the global economy and Fiat money will be hyperinflation.


Crypto is a safe haven - especially the coin private as Monero, Safex, Apollo, ... "


Bitcoin short-term trajectory


In the short term, the price seems to have successfully surpassed $ 6,800 as a support. If sustained above it, it is expected to continue moving upwards.


bitcoin 3


Bitcoin chart | Source: Trading View


Triangle or wedge


BTC price is likely to trade inside the ascending triangle that has completed since hitting the bottom on March 13. The horizontal resistance line is found at $ 6,800. Yesterday, although the price increased significantly on it but did not close above. Instead, the price created a long wick and resembles a star's candle, despite a close.


If broken from the triangle, the nearest support areas found are $ 5,800 and $ 4,800.



Bitcoin chart | Source: Trading View


However, it is likely that the price is still trading inside the rising wedge, which is considered a bearish reversal pattern. This is further strengthened by the 3 upper shadows close to the resistance line.


If expected, the price will likely continue trading inside this pattern until the breakdown and towards the support levels are mentioned.


Bitcoin chart | Source: Trading View


Long-term view


In the long term, the current price is suitable at the resistance of the weekly time frame.



Also, it is facing resistance from the 100-week moving average (MA). Therefore, until this level is crossed, current price movements cannot be considered bullish.


In conclusion, BTC price started to move up on April 2 but did not close high enough to be considered a breakout. Such a failure and the resistance of the current high time frame make prices facing a downward trend. Although a short-term rally is probable, a high time frame resistance that has not been erased is a major obstacle that needs to be overcome in order to continue moving upwards.


You can see the price of BTC here.


Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.


Minh Anh


According to AZCoin News




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