White House and US Senate leaders have finally agreed to inject $ 2 trillion of capital into the economy in support of the economy and Americans suffering from the COVID-19 epidemic. In a situation where stock markets have made positive changes, the CEO of Binance, Chang Zeng Zhao, has predicted a $100,000 price target for each bitcoin.
Zhao believes that since most bitcoins are owned by long-term investors, even if a small portion of the government money is poured into the bitcoin market, bitcoin’s market value can rise sharply.
On the other hand, while central banks around the world are lowering interest rates due to the coronavirus epidemic and taking serious action against the recession, in China, bitcoin miners’ home is back on track, and Given the approach to Hawing, this promises miners and investors. The Chinese central bank is also accelerating the national digital currency supply process. With global uncertainty reaching its peak, Bitcoin seems to be at the beginning of a new phase. With the introduction of bitcoin shortly after the crisis 2008, we should not forget that perhaps the purpose of bitcoin was to get rid of economic crises.
While the value of global assets has now and generally fallen, bitcoin inflation has fallen by half in May and after Halving, and as soon as the dust hits the global markets, there may be a flow of wandering money. That governments have created, to enter the bitcoin market.
Bitcoin, along with other traditional markets, experienced a price increase last week and moved up again to a psychological level of $7000, rising more than 20% this week. Now let’s look at why this resistance is a heavy price and why the price is struggling to break.
Given the shadow of the Como cloud based on the Ichimoku system, and the static resistances showed in the diagram in colored arrows, it can be said that the $7000 to $7200 range is a strong resistance zone. Of course, the multiplicity of price collisions to this area in the time frame of the weekly frame and the accumulation of prices below it indicates a high likelihood of it breaking in the near future. We expect bitcoin price to break down to the support zone at the support level of 6350$ to 5400$ before breaking this resistance and create a return pattern like the twin floor before breaking the resistance at $7000.
The first target, after crossing the resistance range from $7000 to $7200, will range from $7900 to $8000 and above it will be $9050. As you can see in the picture, the targets set by the correction Fibonacci levels and the spread of recent jumps and price reductions are interestingly rounded or rounded numbers.
On the downside, if the price goes back below current levels and reaches below the $6350 to $5400 support level, the first support zone will be 3940$ to 4370$. Falling below this area is the latest bitcoin defender’s bottom line at $3360.
We expect Bitcoin to be modified to a support area of 7000$ to 7200$ before breaking the resistance zone of 5400$ to 6350$. Then, with the price rising and fixing it above $7000, the first target will be the $7900 to $8000 range and then $9050.
On the downside, if the price goes back below current levels and reaches below the $6350 to $5400 support level, the first support zone will be $3940 to 4370$. Falling below this area is the latest bitcoin defender’s bottom line at $3360.