- There are more reasons to be bullish on Bitcoin than bearish
- Filb points our three reasons why Bitcoin (BTC) could surge higher soon
- Bitcoin’s price might plunge further if traditional market continue to show volatility
Bitcoin News Today – After the brutal crash on Thursday and the sharp plunge on Friday morning, the sentiment of BTC investors is down in the dumps. However, many analysts and investors believe that there are a couple of reasons to be bullish on the near term and long-term perspective of the world’s largest digital currency by market cap.
Bitcoin (BTC) recently plunged to a low of $3,800. Despite this dip, analysts are saying that the bull case for the digital currency is rapidly building, at least for the near term.
Bitcoin Is Currently In a Bullish Zone
Recently, a digital currency trader, CJ, tweeted that there are more reasons to be bullish on BTC than bearish. He pointed out that the digital currency has started to trade over a “swing low pivot,” diagonal support that has held the price of the digital currency since the flash bottom.
Bitcoin (BTC) Price Today – BTC / USD
Few things to consider as a move progresses. What are the bullish/bearish technicals? May help position you better before you pull the trigger i.e. start losing bullish points and well, maybe don't long. I am leaning bullish here, as per the points at the moment. pic.twitter.com/CCmsLzcl2p
— CJ (@IrnCrypt) March 14, 2020
Other crypto analysts are also bullish on the digital currency. For instance, Filb Filb pointed out three reasons why the price of Bitcoin could surge significantly higher. The three reasons he gave are:
- The near term chart has formed textbook Adam and Eve bottom
- The funding rate in BitMEX is favoring a bullish reversal
- The bid side of the orderbook has started to stack up again in an act that indicates buying support.
There Is Still Chance of a Downtrend
While there are several bullish factors, there are still chances that the price of the digital currency may plunge again. A chief financial officer at crypto trading platform DeversiFi – Ross Middleton – pointed to weakness in traditional markets forcing institutional investors out of their BTC positions.
Traders are pulling money out of Bitcoin to fund their margin calls on other asset classes. Perhaps they think that there will be better short-term opportunities to go long other asset classes in the near future.
The CEO of Real Vision and a former executive at Goldman Sachs – Raoul Pal – tweeted that. He said that the massive plunge in BTC’s price might be related to “hedge funds that were long BTC having to liquidate, emphasizing that managers need to keep their portfolio within a certain risk level.
What they are trying to point out is that if traditional markets continue to show volatility, the price of Bitcoin (BTC) could continue heading south. This is because investors are trying to hedge the risk of their portfolio in these difficult times, even if that means giving up their positions in digital currency.