Bitcoin May Have Hit Bottom, But When Can We Expect Price To Go Full-Blown Bullish?

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Bitcoin May Have Hit Bottom, But When Can We Expect Price To Go Full-Blown Bullish?
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Bitcoin, currently trading at $6,334 might have reached its bottom at $3,782. The crash on March 12 followed by continuation the next day made all markets plummet. Bitcoin, however, saw a huge 49% bounce in the same day and managed to set a daily uptrend afterward.

According to crypto derivatives analyst, Tone Vays, Bitcoin will not drop below $2,000.

Vays even states that he has an All In position at around $2,750-2,950 because he simply cannot see Bitcoin dropping below $2K.

Is The Bottom at $3,700 Confirmed?

Although Tone Vays initially said that Bitcoin could drop to around $2,800, he seems to have changed his analysis recently stating:

“While I thought that $2,800 was possible coming off of June, I don’t think it’s likely anymore. Because I think this incident earlier this month was close enough to $2,800 that I’m no longer expecting $2,800. So if I’m not expecting $2,800, I’m obviously not expecting $1,000 or $1,300 or $1,500.

There are a few fundamental reasons why Vays and others think this is most likely the case. The upcoming Bitcoin halving is definitely a huge factor but also the fact that Bitcoin and the crypto market have been able to see significant gains while the traditional stock market continues dumping.

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Today, for instance, the most important indices like the S&P 500 are down by 3% while Bitcoin is up almost 8% and it’s looking for a lot more.

What’s Next For Bitcoin?

Even if the bottom is set at $3,700, does that mean Bitcoin will go on to set new all-time highs? Not necessarily. We could definitely see Bitcoin trading sideways for weeks until the Coronavirus outbreak and fears start dissipating.

The bulls are facing important resistance at the $7,000 area from which they have been rejected two times already setting a daily double top. If Bitcoin manages to break above this area, the bulls will encounter basically no resistance until $9,200.