Two most significant factors that broadly attributed to Bitcoin’s recent volatility are:
- The current economic scenario due to the COVID-19 pandemic has left stock market investors perplexed. Markets over the world have lost more in a matter of a few weeks than they lost in years.
- The upcoming reward halving for Bitcoin miners is coming up in May. It implies BTC miners will now receive half of what they earn now for participating in the Bitcoin network.
Short term outlook for BTCUSD turns bullish.
- The day’s range for BTC is $7,030.00 — $7,150.12. This range would have made Bitcoin investors pretty happy because BTC managed to stay above the $7k mark.
BTCUSD Chart Published on TradingView.com
- The four-hour chart of BTCUSD clearly shows the formation of a ‘Bull Flag,’ which is a Bullish indicator. If Bitcoin continues to move in its current pattern, it will break on the upside of the Bull Flag.
- BTCUSD could make a vast upside move and reach $7,539.29.
- The support levels are at $6,931 and $7,175.50.
Bitcoin’s medium-term outlook continues to be Bearish.
- Bitcoin, in the short term, shows no signs of a significant uptrend. That is mainly because of the current economic scenario, and also because Bitcoin has no commercial usage as of now.
- Moreover, the damage to the economy, especially in the manufacturing sector, because of the COVID-19 pandemic would take at least a quarter to resolve.
- More jobs were lost in the last few weeks that were created in the last ten years.
However, in the long term, Bitcoin is Bullish. Blockchain would play a significant part in many sectors in the long run.