Bitcoin
BTC$42 293.60

-2.46%

Ethereum
ETH$3 232.24

-4.11%

Binance Coin
BNB$472.69

-6.19%

Tether
USDT$1.000360

-0.01%

Cardano
ADA$1.49

6.13%

USD Coin
USDC$1.000202

-0.03%

Bitcoin Is Crashing Along With Other Financial Markets


March 2020

Not even a month has passed, but the market sentiment has already switched from optimism to extreme fear that stems from the threat of coronavirus pandemic, which has now engulfed the entire planet and affected the cryptocurrency market, as well as all other markets, except for the gold one, in an immensely negative way.

Crypto Fear & Greed Index

Bitcoin, oil, and S&P 500 are going under


As of the time of writing, the oil prices have collapsed by 32%, the most significant one-day decline since the Gulf War of 1991, which dragged down the currencies of the countries whose economy is based on the export of oil and gas. The S&P 500 index, to which Bitcoin has the largest correlation among other conventional markets, has dropped by 8% on the day. All these occurrences have had a direct impact on the price of Bitcoin, which had already waved farewell to the uptrend that had been shaping up during the first months and a half of the year.

1-day BTC/USDT chart

Over the past three days, the price of BTC has plunged by 15% and dropped significantly below the 200-period moving average while sending the MACD lines, which are already running far below zero, further away from each other, thus proving that the bears became firmly entrenched in this market. There is absolutely no doubt that we are now in a full-scale bear market as the price of BTC has already formed four lower highs and dropped below the critical moving average. Moreover, it appears that the price is finalizing the formation of yet another bearish pattern dubbed three black crows, the second one in two weeks. The first one didn’t result in a massive drop - instead, it lured the reluctant traders into a bull trap by dancing around the 200MA.

And now we see Bitcoin making an attempt to breach the channel line on the daily time frame - the successful completion of this move would provoke an accelerated landslide of the price, possibly to $7000, which served as a support during the formation of the inverted head and shoulders pattern which preceded the minor bull market of January-February.

Right now, there is hardly any basis for the price recovery since the global financial markets have been thrown into disarray, whereas Bitcoin has failed to prove its worth as a safe haven asset in the face of the unfolding crisis, at least for the time being.

1-week BTC/USDT chart

The weekly time frame shows that there is still some hope left for the continuation of what now appears to be an extended uptrend that began last April, as Bitcoin is presently holding at the level of $7729, which is an edge of the higher low in this particular structure. Moreover, Bitcoin is now approaching the point where it has to break out of the ascending wedge formation either to the upside or the downside.

The move that Bitcoin is going to take in the next couple of weeks will determine its behavior over the first quarter of 2020. Unfortunately for those who went long on BTC somewhere at $9000, the probability of the price rebounding to that level or above is substantially lower than the one that suggests Bitcoin falling to the pre-rally level of $7000 or even $6500.

The bears still reign over this market, though this situation presents a prime opportunity to buy BTC once it reaches the potential bottom because once the panic of coronavirus settles, the factor of approaching halving could help BTC rebound strongly to $10,000 or higher.

Author: Alex Paulson for Crypto-Rating.com

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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 73.6% 55 $42 293.60 -2.46% 1.21% $800 714 255 503 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 67.2% 67 $3 232.24 -4.11% 5.26% $385 279 069 584 ETH 7 days price change
3 Binance Coin (BNB) BNB Binance Coin predictions 72.4% 55 $472.69 -6.19% 11.02% $78 844 983 841 BNB 7 days price change
4 Tether (USDT) USDT Tether predictions 90.8% 1 $1.000360 -0.01% 0.02% $78 427 810 735 USDT 7 days price change
5 Cardano (ADA) ADA Cardano predictions 75.2% 53 $1.49 6.13% 31.68% $49 909 365 061 ADA 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 91.6% 1 $1.000202 -0.03% -0.05% $45 478 888 037 USDC 7 days price change
7 Solana (SOL) SOL Solana predictions 63.2% 78 $140.83 -6.42% 3.44% $44 241 286 623 SOL 7 days price change
8 XRP (XRP) XRP XRP predictions 68.4% 58 $0.756082 -3.37% 2.24% $36 037 225 283 XRP 7 days price change
9 Terra (LUNA) LUNA Terra predictions 68.8% 60 $79.34 -7.36% 10.24% $28 407 443 992 LUNA 7 days price change
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14 SHIBA INU (SHIB) SHIB SHIBA INU predictions 70.4% 59 $0.000029 -6.41% 5.45% $15 767 908 019 SHIB 7 days price change
15 Binance USD (BUSD) BUSD Binance USD predictions 93.6% 1 $1.000009 0.08% -0.12% $14 447 326 438 BUSD 7 days price change

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