Bitcoin has performed very well over the past week, with the price rising from a low of $6,800 to a high of $7,800 which is the highest weekly close since the March 12 low, supported by many investors liquidating short positions of tens of millions of dollars. Dollars and their appetite to buy cryptocurrencies, coinciding with the relative recovery in the stock markets with the improvement of risk appetite in the markets.
Most of the other cryptocurrencies followed the price of Bitcoin, as Ethereum rose at a faster rate and reached the $200 price, albeit for a very short period of time.
Bitcoin struggled to maintain its bullish momentum and trade above $7,800, but witnessed a limited pullback and is currently trading above $7,700, and expectations are that the bearish trend will gain momentum to decline at $7,600 before rising strongly above $7800 ahead of the next halving event that is in the distance. Few days.
If history repeats, Bitcoin is in front of big gains
Bitcoin is in a difficult situation as the market seems to be FP Markets Set for some gains before the halving event, but at this point there is also a risk that it could see a sharp bounce back to the $7,300 level before it starts to rise again, and that could take a long time to consolidate and rally.
Analysts say the continued rally is reminiscent of the price action of Bitcoin in February 2019, which marked the beginning of a bull run that year that took Bitcoin from $3,000 to $14,000 in less than five months. Bitcoin is coming soon, and it looks like April 2020 could be ready for a hack similar to February 2019.
Unfortunately, it is not that simple and a continuation of Bitcoin in a full-fledged uptrend in the coming weeks and months would be the ideal scenario for many crypto lovers, but it may not work due to the uncertainty in the global economy, and Bitcoin could be hurt a lot due to its correlation with the stock market which is likely to witness Regressions due to the economic damage suffered by the world's largest economies.
What are the reasons that increased the demand for buying cryptocurrencies?
Before the outbreak of the Corona virus epidemic and the economic turmoil that followed, financial experts were recommending that you be Currencies: The encrypted part of their investment portfolios, and after the crisis they emphasized the importance of Bitcoin in their portfolios.
Many are wondering about the increasing demand by institutional investors for cryptocurrencies after the pandemic, experts believe that this came as a result of the stock market losing its attractiveness after the Corona virus crisis, in light of the decline in demand for many corporate products, which led to long-term declines in corporate profits. It is likely that investors need to search for investment options other than stocks.
Another reason why investors are more interested in cryptocurrencies is that the cryptocurrency, especially Bitcoin, has not been incorporated into most investors' portfolios, especially after it provided a positive correlation with stocks, as Bitcoin was moving in the same direction as the movements of the stocks.