Bitcoin pulls back again, is the rebound over?

The COVID-19 epidemic continues to spread in Europe and the United States. According to real-time statistics from Johns Hopkins University in the United States, as of 2:39 a.m. Beijing time on the 30th, the number of confirmed cases of COVID-19 worldwide has exceeded 710,000, reaching 710,918, and the number of deaths has reached 33,551.

Data shows that the country with the most confirmed cases of COVID-19 in the world is the United States, with a total of over 130,000 cases.
In order to cope with the huge economic impact of the new coronavirus epidemic, the White House and Senate leaders reached a breakthrough agreement last week on a $2 trillion economic stimulus plan.
At the same time, the Group of Twenty (G20) also announced last week that it is taking rapid and strong measures, including injecting more than US$5 trillion into the global economy, to respond to the new coronavirus epidemic and its impact.
With the implementation of a series of stimulus plans, the U.S. stock market has experienced an epic surge after experiencing an unprecedented "four circuit breakers triggered in 10 days". The Dow Jones Industrial Average soared 2,100 points last Tuesday, setting the largest single-day increase since 1933.
Overall, the global market rebounded sharply last week after a brutal plunge. Let's take a look at the situation of Bitcoin.
For most of last week, Bitcoin has been consolidating around $6,600. However, on Saturday, the price of Bitcoin suddenly began to fall back, once dropping to $5,860. Currently, Bitcoin has returned to above $6,100. (Last week, we also reminded of the possibility of a Bitcoin pullback in the article "Key indicators show that Bitcoin may experience a pullback in the short term.")

It should be noted that although Bitcoin experienced fluctuations of more than $1,000 last week, it did not test the resistance line or support level of the descending channel. At present, the price of Bitcoin is approaching the median line of the descending channel, which is $5,600.
So in the next week, we first need to pay attention to whether Bitcoin will test the support of $5,600. If Bitcoin falls below $5,600, it means that the price of Bitcoin has returned to the lower half of the descending channel, and then Bitcoin may retest the support line of the descending channel, which is $4,100.
On the contrary, if Bitcoin remains in the upper half of the descending channel, then Bitcoin will continue to test the resistance level of $7,200. Once Bitcoin can effectively break through $7,200, it is likely to continue to test the resistance of $8,300. Therefore, the $7,200 level is a very critical position and a turning point.

Of course, if Bitcoin can stay above $6,100 this week, it will still be technically bullish.
Last week, as global markets soared, Peter Schiff, one of Bitcoin’s most notable critics, tweeted: “Congratulations to the Bitcoin believers. Looks like Bitcoin may be living up to its status as an uncorrelated asset after all. Because everything is up today except Bitcoin!”
But, for Peter Schiff, he may have unwittingly made the most fundamental bullish case for Bitcoin. Because last week, the main reason for the rise in global markets was the release of amazing liquidity. But for Bitcoin, it does not need any "stimulus package", "quantitative easing" or "bailout measures".
In fact, Bitcoin has rebounded nearly 60% from its bottom of $3,800 to date, which has shown that Bitcoin has something much more powerful than these traditional assets.
For Bitcoin supporters, this is also a very positive sign, because while the global market is still struggling in the quagmire, Bitcoin has taken the lead in getting out of trouble.
As for the current difficulty of Bitcoin mining, I am still optimistic about the future trend of Bitcoin, but one issue that cannot be ignored is that the difficulty of Bitcoin mining has seen the largest drop since December 2018, and it looks like it may drop sharply again in April.

On the one hand, the reduction in mining difficulty may mean that Bitcoin faces more downside space, and on the other hand, it may also mean that miners are more profitable.
Overall, at present, we still need to first pay attention to whether Bitcoin can maintain above $6,100 and whether the support of $5,600 is effective.
If Bitcoin can maintain above $6,100, it will then test $7,200 again, which is the resistance line of the descending channel. Once it successfully breaks through, Bitcoin is likely to test the resistance level of $8,300. That will also lay the foundation for Bitcoin to return to the $10,000 mark. (Maitian Finance)