After plunging towards $6,200 after the monthly candle close, Bitcoin has rallied hard, gaining 5% in the past two hours alone ahead of the daily close arriving in approximately 90 minutes. As of the time of writing this article, the cryptocurrency sits at $6,575, just a smidgen shy from $6,600.
What are analysts thinking about this move?
Bitcoin Could Continue Higher
According to crypto trader RektProof, the recent price action fulfills a three-part schematic he has been tracking, which is made up by an accumulation in a tight range, a short bout of “price manipulation below the day open,” then a period of expansion to reclaim the range traded in during the first step.
As it stands, Bitcoin is entering the third phase of this schematic, which should see it retest $6,700 in the near future, RektProof’s chart suggests.
Nice little power of 3 playing out.
1. Accumulate day open in set range prior to the move down
2. Price manipulation below day open
3. Price expansion following the reclaim of set range.
— RektProof. (@RektProof) April 1, 2020
The call for more upside has been echoed by Bloomberg.
According to Bloomberg, the recent price action has allowed a key buy signal to appear: the Bloomberg Galaxy Crypto Index (an index of the top digital assets that includes Bitcoin, Ethereum, XRP, Bitcoin Cash, Litecoin, and EOS) recently printed a buy signal, according to a trend indicator, the GTI Vera Convergence Divergence Indicator.
A buy signal was last seen early on in January, when Bitcoin was trading in the mid-$7,000s. And a sell signal was seen near the end of February, when BTC was trading in the mid-$9,000s prior to the infamous March 12th capitulation, which has since been dubbed “Black Thursday.”
Surge In Crypto Demand
This surge comes as exchanges have registered a large increase in retail demand for cryptocurrency.
The U.S.-based Kraken corroborated this narrative, writing in a recent tweet that the exchange “recorded an 83% rise in signups, and a 300% increase in verifications” over the past few weeks.
Furthermore, Coinbase wrote in an extensive report that during the now-infamous “Black Thursday” crash, it saw an increase in Bitcoin buyers on the retail end of things:
“But beyond just a rush, two things are clear: customers of our retail brokerage were buyers during the drop, and Bitcoin was the clear favorite. Our customers typically buy 60% more than they sell but during the crash this jumped to 67%, taking advantage of market troughs and representing strong demand for crypto assets even during extreme volatility.”
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