Bitcoin
BTC$42 006.83

-4.17%

Ethereum
ETH$2 879.59

-7.07%

Cardano
ADA$2.20

-0.66%

Tether
USDT$1.000970

0.07%

Binance Coin
BNB$348.19

-6.87%

XRP
XRP$0.924682

-5.83%

Bitcoin Is Crashing Along With Other Financial Markets


#Bitcoin

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

Related

The Reasons Behind the Current Popularity of Play-to-Earn Games
The Reasons Behind the Current Popularity of Play-to-Earn Games
The Best Composition For Your Cryptocurrency Portfolio in 2021
The Best Composition For Your Cryptocurrency Portfolio in 2021
The Biggest Ponzi Schemes in the History of Crypto
The Biggest Ponzi Schemes in the History of Crypto
The Reasons Why 90% of Crypto Traders Lose Money
The Reasons Why 90% of Crypto Traders Lose Money
Crypto Volatility Index (CVIX): An Essential Risk Management Tool in Crypto Trading
Crypto Volatility Index (CVIX): An Essential Risk Management Tool in Crypto Trading
The Best Cryptocurrency Trading Bots in 2021
The Best Cryptocurrency Trading Bots in 2021
Top Cryptocurrency Exchanges to Trade on in 2021
Top Cryptocurrency Exchanges to Trade on in 2021
The Biggest Misconceptions About Cryptocurrency Markets
The Biggest Misconceptions About Cryptocurrency Markets
Bitcoin Price Prediction for 2025 and 2030. Is One Million Per BTC a Realistic Target?
Bitcoin Price Prediction for 2025 and 2030. Is One Million Per BTC a Realistic Target?

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap Volume 24h
1 Bitcoin (BTC) BTC Bitcoin predictions 80.8% 27 $42 006.83 -4.17% -11.61% $790 777 578 253 $41 573 961 976
2 Ethereum (ETH) ETH Ethereum predictions 74.4% 50 $2 879.59 -7.07% -16.54% $338 800 687 923 $25 455 977 114
3 Cardano (ADA) ADA Cardano predictions 61.2% 78 $2.20 -0.66% -7.10% $70 530 174 233 $5 763 986 466
4 Tether (USDT) USDT Tether predictions 94% 1 $1.000970 0.07% 0.08% $68 659 237 949 $93 828 324 388
5 Binance Coin (BNB) BNB Binance Coin predictions 62.8% 78 $348.19 -6.87% -15.48% $58 542 876 453 $2 057 601 013
6 XRP (XRP) XRP XRP predictions 72% 48 $0.924682 -5.83% -13.60% $43 198 966 767 $4 659 237 045
7 Solana (SOL) SOL Solana predictions 60.8% 83 $138.11 -5.71% -4.49% $41 056 611 386 $4 034 501 259
8 USD Coin (USDC) USDC USD Coin predictions 95.6% 1 $1.000267 0.05% 0.01% $30 417 483 528 $4 065 492 865
9 Polkadot (DOT) DOT Polkadot predictions 65.2% 74 $30.18 -3.58% -11.25% $29 809 015 432 $3 812 011 883
10 Dogecoin (DOGE) DOGE Dogecoin predictions 65.6% 78 $0.207270 -6.12% -14.82% $27 239 347 325 $2 234 082 488
11 Avalanche (AVAX) AVAX Avalanche predictions 60% 84 $72.92 -1.19% 13.58% $16 064 028 875 $2 370 386 128
12 Terra (LUNA) LUNA Terra predictions 68% 61 $35.08 -2.70% 0.04% $14 034 168 133 $2 304 712 139
13 Binance USD (BUSD) BUSD Binance USD predictions 96% 1 $1.000286 0.05% 0.03% $13 472 060 941 $7 056 846 892
14 UniSwap (UNI) UNI UniSwap predictions 62.4% 74 $19.45 -7.57% -21.12% $11 897 275 823 $467 119 485
15 Chainlink (LINK) LINK Chainlink predictions 70.4% 64 $22.48 -7.13% -20.69% $10 218 284 489 $1 660 724 551

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2021 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.