Bitcoin Could Return to $10K in April
The White House press conferences on Palm Sunday and the first day of the Holy Week were very somber affairs. United States President Donald Trump acknowledged the devastation caused by the coronavirus pandemic at a time when 10,000 Americans died, and thousands more were expected to perish in April. There was no way to put a positive spin on things, and yet both Wall Street and the cryptocurrency markets posted a strong rebound on April 6.
The Dow Jones Industrial Average rose by more than 1,600 points on the Monday prior to Easter, a 7.73% increase. After the closing bell sounded on Wall Street, Bitcoin posted a 7.04% gain to settle at $7,278 on a 24-hour trading cycle. With DJIA and Bitcoin futures suggesting that a gradual market recovery may be on the horizon, some analysts believe that BTC/USD could return to the highly psychological $10,000 trading level in a few weeks.
Market volatility is a topic that many analysts have been discussing since well before the World Health Organization declared COVID-19 to be a pandemic. The two most valuable cryptocurrencies, Bitcoin and Ethereum, have experienced their lowest volatility levels within the last four months, and there is a noticeable correlation with Wall Street. When the global financial markets crashed on March 9, there were expectations about investors moving funds over to Bitcoin and other digital currencies, but the exact opposite happened. Bitcoin crashed along with Wall Street, and there has been somewhat of a synchronicity since Black Monday 2020.
The Impact of COVID-19
It should be noted that other investment commodities such as gold have also suffered along with Bitcoin and Wall Street. Nothing has been spared from the COVID-19 market panic, but there seems to be a certain optimism with regard to what the U.S. Federal Reserve has been doing to keep the American economy from plunging into another Great Depression. It may be too soon to declare a public health victory, but the White House is already thinking about antibody testing for Americans who may have some coronavirus immunity; this would be done for the purpose of allowing some people to return to work.
Once Bitcoin touches the $8,500 mark, technical analysis would support a quick trip to $10,000 within two weeks. What traders need to be mindful of is that Bitcoin seems to be marching somewhat in step with Wall Street during these trying times, and there will always be a chance of a market correction or a sudden bearish turn corresponding to news headlines.