BitMEX’s latest Crypto Digest paints a stark short-term picture for BTC/USD, but adds that the good times will ultimately return for Bitcoin investors.
Bitcoin (BTC) will likely hit lower levels of up to $6,000 but will avoid bigger losses, the CEO of derivatives giant BitMEX says.
In the latest edition of the exchange’s Crypto Digest on March 12, Arthur Hayes joined other trading sources warning that Bitcoin was not safe from current market turmoil.
Hayes tells of “intense volatility”
Hayes stated that the content of the post should not be republished or reproduced outside of its original location.
On Twitter, he described it as “a look into my trader brain during this time of intense market volatility.”
In the short term, Hayes thinks that BTC/USD is headed to a maximum floor of $6,000 as coronavirus panic takes its toll on sentiment.
The situation will be compounded by hedge funds selling coins into an already downward-facing market due to distress calls from traders.
Hayes still believes in the cryptocurrency’s status as a safe-haven asset and added that $20,000 is a possible target for a bounce before the end of 2020.
Fear & Greed Index plummets to rare lows
As Cointelegraph reported, analysts remain risk-averse on Bitcoin in light of its recent behavior. Having previously risen in the face of pandemonium across global markets, the gains rapidly gave way to losses in March.
On Thursday, BTC/USD hit its lowest levels of 2020, with Cointelegraph Markets’ Michaël van de Poppe eyeing a potential support floor as low as $6,154.
According to the Crypto Fear & Greed Index, which measures investors sentiment as a means of price prediction, “extreme fear” is now what characterizes the market.
Bitcoin Fear & Greed Index. Source: Alternative.me
At 14/100, the index is currently registering one of its lowest scores since the start of the 2018 bear market.
