Bitcoin (BTC) Price Falls Through Several Supports as Coronavirus Fears Grip the Globe
After a strong performance since the start of this year, Bitcoin finally seems to have succumbed to Coronavirus fears as it consistently dropped for three days to lose over $1,500.
$10,000 was in Bitcoin’s sights throughout most of February, with the last attempt on Feb 24, 2020, before three red daily candles took the price all the way down to $8,640. The sharp decline followed a general trend around the world, with equities taking major hits following reports that the Coronavirus has spread to several countries in Europe and the Middle East.
This latest price action also tainted the earlier view that Bitcoin may have started acting like a safe haven asset, following gold’s price movements during times of political turmoil. However, the fact that China remains a major player in the crypto space, Bitcoin’s price drop shouldn’t come as a complete surprise.
In other developments, we also saw the U.S. SEC reject yet another ETF proposal, and one of the most influential investors, Warren Buffet, who met with a group of crypto representatives earlier (led by Justin Sun), revealed that he gave away the coins he was gifted, to charity.
According to technicals, in falling from $10,000, Bitcoin broke down from supports at $9,800, $9,500, $9,200 and $9,000. Now, these supports are likely to act as resistance levels, with the first being $9,000.
On the bright side, Bitcoin’s upcoming halving is still a positive fundamental factor that has the potential to drive the price back up again. Each time the halving takes place, the number of Bitcoins generated by mining new blocks are reduced by 50%, curbing their supply, and provided if demand stays the same, or increases, the price is expected to surge.
Disclaimer: Neither the author nor the publication takes responsibility for the assessment, analysis, and suggestions provided in this article. This article is not meant to provide financial advice and readers are recommended to conduct their own research and due diligence before investing in cryptocurrencies or digital assets.