Analysts are now noting that this period of consolidation seen throughout the weekend is due to investors waiting to see how the U.S. stock market trends when it reopens tomorrow, with BTC likely kicking off its next short-term trend based on whether or not equities are able to extend the momentum they incurred on Friday.
This comes as one prominent cryptocurrency analyst notes that he believes Bitcoin will soon see another $2,000+ movement, although it is up in the air as to which direction this movement will be.
Bitcoin Enters Rangebound Trading Phase as Investors Await Stock Market Open
At the time of writing, Bitcoin is trading is trading down marginally at its current price of $5,380, which is around where it has been trading at in the time following its rebound from lows of $3,500.
This period of sideways trading signals that bulls and bears have reached an impasse for the time being, which is leading some analysts to note that where it goes next will depend on how the stock market opens tomorrow.
Although U.S. equities did see an intense rebound on Friday afternoon, it still remains unclear as to whether or not this was simply a dead cat bounce, or if it was a sustainable movement that will be followed by further momentum in the days ahead.
Big Chonis, a popular crypto analyst on Twitter, spoke about Bitcoin’s correlation to the stock market in a recent tweet, noting that BTC is “following, not leading.”
“BTC – just waiting for the Stock Market to open tomorrow 9:30AM EST USA … bitcoin following, not leading,” he noted.
$BTC – just waiting for the Stock Market to open tomorrow 9:30AM EST USA … #bitcoin following, not leading… pic.twitter.com/eC4EJAJySL
— Big Chonis Trading (@BigChonis) March 15, 2020
Expect a Massive Near-Term Movement for BTC
DonAlt – another popular crypto analyst – explained in a recent tweet that he is neutral on BTC at the moment, and that he believes it could make a swift $2,000+ movement at any instant.
“BTC update: Re-hedged my spot, I’m flat again. Made almost 20% profit on the position, won’t complain. This could both pump $2000 or dump $2000 at this point and I’m not willing to wait in position to see which it’ll be. I’ll look for entries around the monthly close instead,” he explained.
Re-hedged my spot, I’m flat again.Made almost 20% profit on the position, won’t complain.This could both pump $2000 or dump $2000 at this point and I’m not willing to wait in position to see which it’ll be.
I’ll look for entries around the monthly close instead. pic.twitter.com/M8vGFvvI78
— DonAlt (@CryptoDonAlt) March 15, 2020
The days ahead should provide investors and analysts with insight into the cryptocurrency markets, as the stock market’s price action tomorrow will likely have tremendous influence of that of Bitcoin.
Featured image from Shutterstock.