Bitcoin is sticking above $7K despite continued pressure. In recent weeks, the crypto market has seen the return of “bloody Mondays” a term coined back in the 2017 market boom. The phenomenon sees the market go into the weekend strong but begin falling on Sunday before hitting weekly lows on Monday. Today has seen Bitcoin start the week negative but the bulls have been fighting to keep prices up.
As a result, Bitcoin has been slipping below $7K but through continued effort, the bulls keep getting it back above this critical position. As of yesterday, Bitcoin was testing its $7.2K resistance which after failing to break above has seen a violent rejection towards the $7K support.
So far, $7K seems to be holding up well but there seems to be a need for a further retracement to $6,800, allowing for further accumulation and entry of new investors before the bulls can make another attempt at $7.2K.
Now, the market is signaling a huge move in the short term. This follows a record drop in volatility. Since the start of the month, Bitcoin has been trading in a tight range of $6,600 and $7,300. This dramatic drop in volatility has in the past led to some violent price movement soon after.
Although typically this move is downwards, there are a number of indicators that are encouraging for bulls. The first is the entry of new buyers which has jumped in the last few days.
Coinbase CEO last week shared in a tweet that the number of deposits had jumped. More specifically, deposits of $1,200. This is coincidentally the same amount that the US government began disbursing through the stimulus package bill. We earlier reported that some of the ‘helicopter’ money being handed out to Americans could make it to the crypto market. If right, this will drive up demand and see prices pump.
In addition, the Fear & Greed index continues to register “Extreme Fear.” Since mid-March, the index has been stuck in “Extreme Fear” signaling little confidence in the market.