June 1st has found Bitcoin valued at $9,550.
Its current value is a gain of 50% from its April 1st value of $6,300.
Bitcoin has officially recovered from the Coronavirus crash of mid-March.
All eyes are on $10,000 as we usher in a new month.
When Bitcoin dropped from $9,100 to $3,700 in mid-March, many traders and investors believed BTC was headed to lower levels of even $1,200. The panic from the rapid spread of COVID19 had affected traditional stock markets that resulted in a domino effect of aggressive selling even in the crypto markets. However, less than 3 months after the crash, Bitcoin has fully recovered from the drastic dip in mid-March.
Bitcoin (BTC) is Up 50% in Q2 of 2020
Further doing a quick analysis of Bitcoin’s performance in the second quarter of 2020, we realized that the King of Crypto has increased in value by exactly 50%. April 1st found Bitcoin trading at $6,300. At the time of writing this, BTC is trading at a very strong support zone of $9,570 (Binance rate). Doing the math, BTC has increased in value by 50.79% since that first day of April.
The team at Skew.com has gone further and done an analysis of Bitcoin during each quarter of the year from as way back as 2014. The information can be found in the following Tweet by the team at Skew.
#bitcoin is up nearly 50% this quarter pic.twitter.com/cvEiGD0xc0
— skew (@skewdotcom) June 1, 2020
$10,000 Per Bitcoin is less than $500 Away
Further analyzing Bitcoin’s performance over the weekend, BTC briefly dipped to around $9,300 only to bounce back up to $9,500. Bitcoin is trading at $9,570 at the time of writing this. This value is only $430 away from the bullish psychological price level of $10,000.
Late last week, the creator of Bollinger Bands, John Bollinger, hinted at Bitcoin breaking this level and continuing on an upward trajectory. Mr. Bollinger is a legendary trader and his statement was via the following tweet.
If $BTCUSD crams some wax in its ears, and so misses the Siren's song, we could see a nice rally here as the psychological resistance at the round number gets torn out.
— John Bollinger (@bbands) May 29, 2020
Additionally, a while back, popular Bitcoin and crypto analyst, MagicPoopCannon, had postulated that Bitcoin was on a path of breaking a two-and-a-half falling trendline. If Bitcoin broke to the upside, BTC could retest its 2018 high of $17,200. The chart below by Magic further provides a better visual elaboration of his analysis.
BTC’s broadening wedge courtesy of MagicPoopCannon on Tradingview.
In conclusion, and as we usher in a new month, there is a sense of optimism surrounding Bitcoin breaking the bullish psychological price level of $10,000. Only time will tell if we are indeed in a bullish cycle and BTC will go on to exceed expectations.