3 Things Holding Back Bitcoin Price From $7K Right Now
Bitcoin has slowly regained value after its major correction two weeks ago. It now appears on the cusp of breaking USD $7,000 yet every gain is followed by a short correction. A series of factors keep preventing it from breaking this important price line.
GLOBAL MARKET UNCERTAINTY
Every commodity market has been shaken over the past few weeks. There is no shortage of investors eager to take advantage of discount prices, yet fear more volatility. Ironically, the price recoveries over the past few days increase this fear, as retracements often follow such moves. In this context Bitcoin is no different than precious metals or stocks, both of which are experiencing a slow recovery from the recent crash.
Bitcoin approached the $7,000 barrier yesterday, indicating that plenty of crypto adopters are eager to drive the price higher. Many merely need to overcome their fear that the price could once again collapse.
$BTC HTF Update
Still no clear signs of which direction we will be heading next as PA repeatedly tests this strong region around $6800-$7000, flipping this into support would be great!
Personally not going to long into such clear resistance but which do you see playing out? pic.twitter.com/lBBbFWP9Ir
— Crypto Cactus (@TheCryptoCactus) March 26, 2020
NEED FOR QUICK CASH RATHER THAN BITCOIN REMAINS STRONG
Nations around the world have seen their economies virtually shut down as a result of the COVID-19 outbreak. Much has been made of the mass sell-off of fixed assets, such as Bitcoin, by furloughed workers now in need of quick cash. The impact of this phenomenon has yet to be fully realized.
Likewise, even workers that remain financially stable are hesitant to purchase Bitcoin, fearing future economic challenges. Simply put, people hold their money tight when they are worried about paying their bills. The current situation does, however, underscore the reach of cryptocurrency among the global working classes.
Governments rushing to provide financial relief may give Bitcoin a tremendous boost, as it will lessen many of these fears. The best-known of these stimulus packages is the massive $2 Trillion under consideration by the U.S. Congress. Such a huge handout of money to the American public is all but certain to spark a wave of spending that will no doubt be good for Bitcoin’s value.
YOUNG ADULTS HAVE BECOME DISTRACTED
Persons under 35 by-far represent the largest group of crypto investors, especially in the developed world. Many have paused interest in the crypto markets as they address recent disruption in their daily routines. Countless young adults now struggle to take care of family and modified work obligations. Also, millions of college students have been forced to leave their campuses.
It is reasonable that these individuals would seek a return to normalcy before they get back to investing in Bitcoin. The good news is that they will no doubt be eager to do so once the current global health crisis abates.
What do you think is the main thing holding back Bitcoin price right now? Add your thoughts below!
Images via Shutterstock, Twitter @TheCryptoCactus