The Bitcoin news now show that the cryptocurrency is vulnerable after the recent drop and may hit levels of $6,000. The dominant coin will avoid bigger losses, according to the CEO of the derivatives giant BitMEX, Arthur Hayes. As Bitcoin erases the gains again, many think that it will stabilize in the $6,000 region before resuming its normal path to $20,000.
In the latest edition of the exchange’s Crypto Digest program on March 12, Hayes joined other trading sources and warned that Bitcoin was not safe from the current market turmoil. He stated that the content of the post should not be republished or reproduced outside of its original location.
On Twitter, Hayes described this as “a look into my trader brain during this time of intense market volatility.” In the short term, he said that he thinks BTC/USD is headed to a maximum floor of $6,000 as the coronavirus panic takes its toll on sentiment.
Hot off the press the next issue of the Crypto Trader Digest. A look into my trader brain during this time of intense market volatility. https://t.co/sWmNnvMk25
— Arthur Hayes (@CryptoHayes) March 12, 2020
The situation will be compounded by hedge funds selling their coins into an already downward facing market mainly because of the distress calls from traders. Still, Hayes believes that as Bitcoin erases gains, the cryptocurrency’s status as a safe haven asset is here and added that $20,000 is still a possible target for a bounce before the end of 2020.
The media reported that analysts remain risk-averse on Bitcoin in light of the recent market behavior. Having previously risen in the face of the pandemonium across global markets, the gains quickly gave way to losses in March.
This Thursday, we can see that the Bitcoin price hit its lowest levels of 2020 and the analyst Michael van de Poppe said that he eyes a potential support floor that is as low as $6,154. The Crypto Fear & Greed Index which measures the investors sentiment as a means of price prediction shows that “extreme fear” is what characterizes the market now.
Meanwhile, Bitcoin erases gains and is now at $6,266 in one of the biggest bloodbaths of the year, falling down by 20% along with other altcoins on the market. The cryptocurrency news show that the total market cap is now at $174 billion which is more than 30% down compared to yesterday’s levels, all of which is due to the coronavirus outbreak and the economic crisis happening around the world.
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