After the Fed announced some new recovery measures on Monday, Bitcoin price responded positively in cue with the stock markets.
In a major recovery, Bitcoin price has surged 4% today trading above $9500. This recovery comes after BTC trading in a close range of $8900-$9000 over the last weekend. At the time of writing, however, Bitcoin is trading at $9,468 but analysts have announced a higher target for it.
Experts say that the Bitcoin price recovery follows the broader market recovery on Wall Street futures on Monday. As the stock market reacted positively to the Federal Reserve’s Monday announcement, the crypto market followed the cue.
The Fed’s measures arrived in response to the rising concerns of higher coronavirus cases. As part of the stimulus, the Fed announced that it will buy individual corporate bonds even through the secondary markets. Earlier in April 2020, the Federal Reserve also announced buying corporate ETFs in the primary markets.
Rumors are that the Trump administration is planning to pump another $1 trillion in the U.S. economy. Well, Bitcoin’s response soon after the Fed’s announcement suggests that it still remains exposed to macro forces.
What’s the Next Target for Bitcoin Price?
Well, the most important question in investors’ minds currently is whether this is really the start of the next Bitcoin bull run. Note that so far in 2020, Bitcoin has pulled back twice from its major resistance of $10,500.
But before that Bitcoin has to surpass two major levels ahead. One is the $9600 levels and the next is the $9800 level. However, the CoinTelegraph analyst Michaël van de Poppe remains bullish on Bitcoin. In his recent Twitter update, Poppe summarized that Bitcoin can soon reach $12,000 levels once it crosses $10,500. He wrote:
“And, the price of #bitcoin is back in range and back on schedule to break above $10,500 towards $12,000”.
On the lower side, Poppe said that Bitcoin needs to sustain $8600 which is a “crucial pivot”. The 200-day moving average of Bitcoin currently stands just above $8000 levels. Another popular crypto analyst Josh Rager also has expressed his opinion via Twitter.
To maintain a bullish perspective price must reclaim $9550
Then reclaim $9800+
Until then, personally feel like the downtrend can continue pic.twitter.com/i3wcMVvZtL
— Josh Rager 📈 (@Josh_Rager) June 15, 2020
Over the last one week, Bitcoin has seen massive volatility in its price. After struggling at $10,000 levels, the Bitcoin price slipped 10% close to $9100 by last Friday. However, this recovery in the BTC price is a welcome thing for investors.
While some analysts are positive on this momentum, others remain more or less cautious. Bitcoin’s past behavioral trends suggest that the world’s largest cryptocurrency will continue to trade between $9000-$10,500 levels unless there’s a strong breakout.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
