Since the start of March, the spread of the coronavirus pandemic has taken a toll on the global markets. Even haven assets were not spared with crypto markets crushing severely between March 12 and March 13.
However, it appears like the crypto markets are on the road to recovery. Bitcoin saw a net inflow of over $16 million in the early morning of March 23.
Also, the major cryptos enjoyed a massive inflow, which indicates a sign of a good day, according to the Coiness in-house analysts. Miles said:
“As for technical analysis, the trend of the 10-day moving average should be paid attention to. In the current major crypto daily chart, the 10-day moving average tends to show a significant downward slope.”
In the current circumstances, even if the Bitcoin price manages to break through the moving average in the short term, the price will also plunge.
The real opportunity, in general, will only show after the 10-day moving average flattens, and the price manages to stand above the moving average. If that happens, it will turn out to be a technically stable period where investors can consider to do some long orders.
The large funds participating in this market are significantly small because of the small market capacity in the cryptocurrency market. Furthermore, assets will not enter the market again until the external market liquidity is alleviated, which might cause the current market participants to be small and medium funds.
Hence, even though it appears like the Bitcoin trend has ‘decoupled’ from the traditional market, the retail investors alone may not have the capacity to make the market a bull market once more.
Until most, if not all, the risks in the peripheral markets are relieved, the crypto market might maintain a wide range of fluctuations.