Bitcoin Should Now ‘Behave Badly’ Says Analyst as IMF Warns of Crisis
Further losses are easily on the table for Bitcoin as the unusual “black swan” market environment continues, warns Cointelegraph’s filbfilb.
Bitcoin (BTC) continued choppy trading behavior on March 11 as analysts revealed that the “black swan” state of the markets could produce fresh losses.
Cryptocurrency market daily overview. Source: Coin360
Filfilb expects “bad behavior” from BTC
Data from Coin360 and Cointelegraph Markets painted a precarious picture of BTC/USD strength on Wednesday. $7,750 support had remained since Monday, but resistance at $8,000 was once again keeping gains firmly in check.
At press time, Bitcoin circled $7,800, but there was little confidence that even those levels would endure for long.
Bitcoin 1-day price chart. Source: Coin360
Against a backdrop of continued fragility on traditional markets and the prospect of coronavirus spreading more widely in Europe, Cointelegraph Markets analyst filbfilb set the tone.
“Bitcoin has never had to deal with anything like this, it is a truly global reaching issue,” he told followers of his Telegram trading channel.
“We should expect Bitcoin to behave badly, correlated to the indices AND we should expect it to do things we haven’t seen it do in difficult times (like potentially lose the log support channel).”
Even if such long-term trends were ditched, he added, it would still not represent “game over” for Bitcoin.
“We are still in a ‘child’ like state of maturity for Bitcoin becoming a game changing asset; this is actually exactly the sort of event which might help in the long run.”
IMF demands flood of liquidity
Governments are widely tipped to pump cash into ailing economies to alleviate the symptoms of coronavirus panic. As Cointelegraph reported, however, such practices further undermine the credentials of fiat currency in the long term.
Nonetheless, without action, the world faced a rerun of the 2008 financial crisis, the International Monetary Fund (IMF) warned on Wednesday.
According to a source who quoted Christine Lagarde to Bloomberg, the IMF favored “super cheap” funding to avert a bank liquidity crisis.
Both the U.S. and U.K. central banks have slashed interest rates over the past week, while the European Central Bank is expected to step up its “quantitative easing” money printing activities.