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- The worldwide economic uncertainty of the coronavirus leads to falling prices of the most popular cryptocurrencies as well as stocks.
- Industry experts are currently discussing whether Bitcoin will initiate a trend reversal.
Global uncertainty is growing steadily due to the fueled mood caused by the further spread of the coronavirus. Both the cryptocurrency market and equities have suffered heavy losses in recent days and weeks. Bitcoin shows a price drop of more than 12.92% within the last 7 days to a price of USD 8,679.77.
Market capitalization has fallen from USD 283 billion to USD 247 billion in just 7 days, marking a capital outflow of more than USD 33 billion. Industry experts are currently discussing what level of support Bitcoin must maintain to prevent BTC from falling even further.
Experienced Bitcoin trader Josh Rager describes that Bitcoin is drawing lower lows on the daily chart and therefore the current short-term trend is rather bearish. If BTC continues to fall below the important support level of $8,300 USD, it could go further downhill. In the CME Bitcoin Futures, a gap of 8,700 USD has again appeared on the weekend, which Bitcoin could close and thus increase in the short term.
The Bitcoin Futures expired on Friday and closed at a price of 8,700 USD. Since Bitcoin continued to fall over the weekend, this created a “gap” of just under 300 USD, which Bitcoin could close in the short term. The CME offers its Bitcoin futures settled in cash only during the week, so since the official launch until today some such “CME Bitcoin Future Gaps” have arisen.
While this technical indicator is considered a strong signal, this issue is controversial in the community, so there is no guarantee that Bitcoin will move towards the gap. The commodity and Bitcoin trader “Dave the Wave” advises all hodlers and long-term investors to stay calm. As early as February, he pointed out to his followers that Bitcoin would soon enter the buy zone and could thus start a trend reversal:
For those getting stuck or confused on the shorter term call, here’s my view going forward. If you’re a holder/ investor, ignore the short term calls and focus on the medium/ long term. Main point being, a consolidation to the buy zone would set BTC up nicely for its run.
In his opinion, Bitcoin is now close to a positive trend reversal:
This is it. The turbulence before take-off…. pic.twitter.com/4RtAVaoPXy
— dave the wave🌊🌓 (@davthewave) March 1, 2020
The Altcoin market seems to follow Bitcoin blindly and in some cases has recorded higher losses within the last 7 days. ETH fell by 19.43 % to USD 221.34, XRP by 19.41 % to USD 0.2317 and LTC by 26.71 % to USD 58.58. It is not yet possible to predict when the bulls will take the helm.
Stock market suffers worst crash since 2008
The Dow Jones Industrial Average, which has been calculated by the Dow Jones news agency since 1895 and is regarded as the world’s most respected index, has recorded the largest weekly decline since the global financial crisis in 2008. Tom Lee, founder of Fundstrat, describes that the S&P 500 destroyed profits of more than five months in just a few days.
The drop was more than 1,000 points, with the Dow marking more than 357 points in a single day alone, a loss of more than 10% in one week. It remains to be seen if and when these developments will be reversed.
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