Bitcoin has been closely following its post-March 2020 crash trajectory, according to QCP Capital, a Singapore-based digital asset trading firm. Here are the most important points to take away from their analysis:
1. Bitcoin’s current price action is similar to that of the post-March 2020 recovery. After the crash last year, Bitcoin saw a sharp decline followed by a gradual recovery over several months. QCP Capital argues that the current price action is following a similar pattern, with a sharp drop in May followed by a slow recovery.
2. The market sentiment is also similar. QCP Capital notes that the market sentiment during the post-March 2020 recovery was cautious and uncertain, with many investors waiting on the sidelines. Similarly, the current market sentiment is also cautious, with many investors hesitant to enter the market.
3. The macroeconomic environment is also comparable. During the post-March 2020 recovery, there was a lot of uncertainty in the global economy due to the COVID-19 pandemic. Similarly, the current economic environment is also uncertain due to the ongoing pandemic and other geopolitical factors.
In summary, QCP Capital argues that Bitcoin’s current price action, market sentiment, and macroeconomic environment are all closely following its post-March 2020 trajectory. While this may be concerning for some investors, others may see it as an opportunity to enter the market at a lower price point and potentially benefit from a gradual recovery over time.