Bitcoin (BTC) may be up five percent at the time of press, but one trader is predicting doom.
In his preview, prices may end up rallying to between $6,200-400 zone before dropping to $4,200. But that is even “before we can state anything about a bottom,” he adds.
“The markets are bouncing a little, which gives altcoins also space to have a relief rally. Still assuming we’ll see a rally to $6,100-6,400 on BTC, which give altcoins space. After that I think we’ll retest $4,200-4,400 before we can even state anything about a bottom.”
The markets are bouncing a little, which give altcoins also space to have a relief rally.
Still assuming we’ll see a rally to $6,100-6,400 on $BTC, which give altcoins space.
After that I think we’ll retest $4,200-4,400 before we can even state anything about a bottom.
— Crypto Michaël (@CryptoMichNL) March 19, 2020
Bitcoin Recovers but Traders Cautious
Currently, the cryptocurrency community is threading with caution. After a crash that saw prices more than half from February 2020 high, BTC traders and the investment community are apprehensive and most are cautious to commit.
Amid fear, however, BTC seems to crawl out of the bear abyss.
Up 9% in the past 24 hours, prices are inching higher after flat-lining for the better part of the week. Most importantly, trading volumes continue to rise.
According to coin trackers, BTC’s trading volumes rose 17% in the last day to $32.2 billion.
Tether (USDT) Issuance Spikes
However, what’s interesting is that the accumulation is at the back of increasing USDT issuance. As reported by CoinGape, $180 million USDT coins were issued in the past 48 hours.
There is a positive correlation between the price of Bitcoin and the amount of USDT, a stable coin.
Because of this correlation, there have been complaints of deliberate manipulation and early last year, Tether Limited, the official issuer of the stable coin, was summoned by the New York Office of the Attorney General (NYAG).
Still, this must be taken with a pinch of salt.
$5 Trillion to inflation and pump Bitcoin
Across the globe, central banks have embarked on stimulating the economy and have let loose their money bags. By releasing billions of dollars to juice up the economy hoping to arrest runaway asset liquidation, the USD continues to soar.
Now, one crypto commentator, Anthony Pompliano, in a Twitter thread, opines that the USD must be weakened to abate a liquidity crisis.
By his estimation, over $5 trillion will be required to complete the devaluation and prop the free-falling stock and commodities market.
5/ The United States is going to have to weaken the dollar at some point. This is only way to stop the bleeding.
They will have to flood the market with trillions of US dollars in order to accomplish this.
My guess is that it will require at least $5 trillion.
— Pomp ? (@APompliano) March 18, 2020
Before then, BTC prices may correct higher before nuking down to $4,200.