With Bitcoin crashing by 38 percent in just 24 hours on March 12, the number of its obituaries has increased for obvious reasons. Things were even worse for Ethereum -- the biggest altcoin faced its worst day to date.
That said, Placeholder partner Chris Burniske believes that both BTC and ETH can be some of the fastest-recovering assets.
8/ Once the world has stabilized, I do expect $BTC $ETH and quality #cryptoassets to be some of the fastest recovering assets out there, but we’ve got a tunnel to navigate before then.— Chris Burniske (@cburniske) March 16, 2020
It's 2015 all over again
Bitcoin slumped all the way to the $3,800 level on March 12 with an immense red candle that annihilated all possible supports. It was followed by a swift recovery to the upper-$5,000 level, but the cryptocurrency still fell short of closing above the 200-week moving average. In fact, the $5,500 support has flipped into resistance.
On a positive note, BTC has already closed below its 200-week MA back in August 2015, which was followed by a massive bull market. While it's not indicative of the ultimate bottom, there is a historical president when BTC recovered and started a new bull run after struggling to break above this average for six long weeks.
5/ Fortunately, we’ve broken the 200 week MA in the past and recovered. Below is a photo of August - November 2015, where we struggled with it for 6 weeks before breaking above it (kicking off the next bull). pic.twitter.com/zwTjwBu15G— Chris Burniske (@cburniske) March 16, 2020
Bitcoin could plunge lower
Still, Burniske doesn't rule out that BTC could plunge lower if the coronavirus pandemic doesn't slow down and continues to rattle global markets. His next target is the $3,100 level, which turned out to be the bottom in December 2018. Notably, BTC didn't close above the 200-week MA back then.
As mentioned above, Burniske does expect Bitcoin and Ethereum to be some of the fastest-recovering assets. This makes a lot of sense since the market caps of these assets are tiny compared to gold or the S&P 500.