Markets Hurt by ‘Extreme Panic’; BTC Recovers after Crash

Markets Hurt by Extreme Panic; BTC Recovers after Crash

The Bitcoin (BTC) was almost stable on Saturday as it was trading between $5,045 and $5,641 compared with its trading activity earlier this week.

On March 12, the cryptocurrency tumbled more than 50.8 percent. However, it has recovered 37.5 percent since then to trade at $5,200.

Crypto experts are trying to write a narrative about the bearish performance seen by the Bitcoin over the last period. The weekend closure of global stock markets seems to ease some of the Coronavirus concerns that have adversely impacted both markets for weeks.

Some analysts are blaming trading giant Bitmex xMiBBitmex for this negative performance, claiming that their foul play pushed the cryptocurrency near catastrophic levels.

There’s a neutral Doji candlestick on the regular timeline, indicating that traders are unsure about the market’s trend. The candlestick is neither bullish nor bearish.

The 4-hour timeframe show that traders may find that the RSI stays flat as buy and sell volume decreases and Bitcoin trades within a narrow range between $5,517 and $5,021.

Some traders may claim that the short-term frame supports a bullish argument for Bitcoin because each 4-hour candlestick has developed a lower-high as prices go down. However, the upward pattern of Stochastic RSI and RSI, and the MACD histogram shows a strong momentum.

The latest BTC performance indicates that traders take profits when the range top is hit rather than opening long positions and buying on breakouts.

Peter Schiff: BTC Negatively Correlated to Safe-Haven Assets

For those who think BTC is “digital gold,” data reveals the two currencies out of step on the monthly time frame. However, both BTC and gold rose 9.45 percent and 8.82 percent in 2020.

Unsurprisingly, Bitcoin skeptic Peter Schiff thinks otherwise, he said on his twitter account:

“Bitcoin is no longer a non-correlated asset. It’s positively correlated to risk assets like equities, and negatively correlated to safe-haven assets like gold. When risk assets go down, Bitcoin goes down more. But when risk assets go up, Bitcoin goes up less. No value in that!”

At the time of writing, BTC rose 0.38 percent to $5,288.18.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.