The BTC price slump on Wednesday, where it went down from $6494 to $6147, was quickly followed by a sharp rally to $6784 by Thursday. After the price crash in March, Bitcoin prices have been rallying up with short-lived fallouts. The positive signs of revival have boosted the crypto market with the much-needed optimism as against the still bearish global stock market.
Market experts have analyzed the price slump of Wednesday, as a mirror effect of the stock market dropping to another low. The closing bell on the day recorded a 4.41 percent drop of S&P 500, while the Dow index dropped to a 4.44 percent. The slumping of the stocks was induced by the news of a rising number of the corona affected in the country, which was preceded by the White House estimation that the death toll from the pandemic in America could reach 240, 000 in the coming three weeks.
With the extension of the nationwide lockdown, it stands clear that the underperforming markets will pay the collateral as well. Until the pandemic is brought under control, there is no chance of reviving the traditional markets, as per experts.
While the crypto market also suffered a price setback along with the stocks, the prices were seen rallying as soon the traditional markets closed, breaking from the pattern of lower highs. Within just a time frame of 4 hours, prices jumped from $6200 to $6700.
Traders who were fearing a price dive to $5150, are now relieved with the sudden bullish revival of BTC. The altcoins have been showing positive signs as well, contrasting the bearish markets worldwide.
The push through the $6200-$6400 range, helped BTC to jump above the $6600 resistance. Now, with prices above the $6700 mark, traders will rally for $6900 with the target of $7000 for the time being. The climb might be slow, but it has proved to be steady.
In can the price loses momentum, the traders can opt for a pullback to retest the underlying support at $6400, if not the at $6300.
However, the market as of yet has shown optimistic rallying by BTC and the altcoins, which has attracted more trading on different exchanges. Although the traditional markets are bear, the crypto market is optimistic for a full revival in the coming days.
Will the US Stimulus Package Boost the Crypto Market?
According to market analysts, the $2 trillion economic stimulus package could bring gradual improvements in the crypto market. Prices might not shoot up immediately but will show a gradual rise.
The stimulus package is been provided to the people so that they can steady incomes amidst the economic crisis. Such a crisis urges people to save rather than buying, so they might not start investing in crypto just immediately, but there is a high chance that many will try to hold digital assets as time passes.