Traders say worst of 2020 sell-off may have passed

Market signals show a growing conviction among bitcoin traders that prices won't fall below $6,000 in the short term, but rallies above $7,000 appear to be drawing in sellers.

DiPasquale said many bitcoin traders are looking ahead to May's expected "halving," when the supply of new units of the cryptocurrency issued by the underlying blockchain network is scheduled to drop by 50 percent. The once-every-four-years-event was coded into the 11-year-old bitcoin's original programming as a way of minimizing inflation.

Novogratz said he expects bitcoin's price to double within the next six months and potentially climb above its previous record near $20,000 by the end of the year.