Bitcoin unsuccessfully tries to get hold of the earlier upward movement in the environment. In this publication, it is trading around $6 500, losing per day 2% of the cost.
The situation is developing on the background of the American authorities on the allocation of the $2 trillion to stimulate the economy. Many analysts believe that these and other recent measures will have a positive impact on bitcoin in the long term, writes CoinDesk.
«Payment of the U.S. government will directly go into the pockets of the people. Of course, some people will buy bitcoin, but they will be much less than you expect from others», – said the head of the digital assets of the Bank Swissquote Chris Thomas.
He noted that new money has entered the market during the last 10 days, and additional stimulus measures are unlikely to have much impact on bitcoin in the short term. Indicator Glassnode indicates that investors really accumulated cryptocurrency in March, but it was below $5 000.
Thomas admits that the new factor of demand for money could be the continued spread of the pandemic coronavirus. Against this background, declining liquidity, as markets have already demonstrated earlier in March.
Daily and hourly charts
Long wick on top reflects the failure around the level of $7 000. The inability to overcome the psychological barrier weakened the bullish sentiment emerged against the background of the rise on Monday. The output of the symmetrical triangle downward also is a strong bearish signal.
The four-hour chart
On the four-hour chart bitcoin remains locked in the uplink. Passing the bottom point of $6 250 will mark the end of the corrective rally from the lows below $4,000, and may lead to retest support $5 686.