The crypto ‘wild west’ appears to back. It is a situation that is characterized by massive speculation and extreme volatility mostly characterized with young markets. Bitcoin bears have literally not left any stone unturned. The selloff in the entire cryptocurrency market has also reached extreme levels with more than $110 billion wiped off like a speck of dust on white linen.
The breakdown, which started late February after Bitcoin price hit its 2020 peak at $10,533 was linked to the deadly Coronavirus. However, market volatility and panic took advantage to force one of the worst selloffs in the cryptocurrency market with Bitcoin nosediving to $3,864 Intraday low on Coinbase).
At the time of writing, BTC/USD is having an excellent pullback with gains of more than 20% from the opening value at $4,844. However, the growth is only important at the moment because with extreme volatility being experienced, BTC/USD could be back under $4,000. In other words, the price trends are largely distorted and it’s difficult to tell which direction the price takes in the near term.
BTC/USD 4-hour chart
From a technical perspective, Bitcoin bulls have the zeal and desire to reverse the downtrend. The Relative Strength Index is making a way out of the oversold region in the 4-hour range. The sharp recovery comes after testing lows of 13.14. A continued movement towards the average would encourage the buyers in the ‘sidelines’ to join the market. Meanwhile, establishing higher support will go a long way in sustaining the gains already accrued on the day.
Bitcoin Key Levels
Spot rate: $5,830
Relative change: 983
Percentage change: 20%
Trend: Bullish bias
Volatility: Extremely high
