2 min read
Recently, Bitcoin lost over $2,000 in less than 12 hours. The cryptocurrency continued its shocking downward trend settling around the $5300-$5,700 range. Currently trading at just above $5,000, Bitcoin may have just hit its bottom. According to analysts such as Bitcoin Jack, the next few days may be setting up the next Bitcoin cycle with the alleged bottom being the driving force.
March 14 – 20 is where I expect the foundation of the next cycle to be created
7 days in total
I will rest on the last day
— //Bitcoin 𝕵ack 🐐 (@BTC_JackSparrow) March 15, 2020
Other analysts are also weighing in on the latest Bitcoin trends. From their comments, it seems that this week may be the make or break period for Bitcoin. Based on market trends, Bitcoin must close above-set levels to give traders some hope for the future. Closing below these levels would indicate a bearish period that would succeed the massive drop recently witnessed.
Weekly close above 5500$ = bullish
Weekly close below 5500$ = bearish
5500$ (MA200 1W)
4100$ (WEEKLY LEVEL)
3120$ (2018 BOTTOM)
1830$ (50% FIB)
900-1000$ (ATH 2013)
I have cash to buy all these dips. pic.twitter.com/VlhS0qWZGp
— Alejandro 🇪🇸 (@Pastore1314) March 15, 2020
However, if Bitcoin were to recover some of its lost value, then a recovery phase, followed by a bullish period would succeed the bloodbath that shaved off a quarter of Bitcoin’s value in just a few days.
Monday Begins With Even More Bloodshed
The COVID-19 virus is responsible for the market crash witnessed. Most people panicked which led to impulsive decisions in the stock market. The markets have continued to bleed today with Bitcoin and Ethereum both tumbling over 15% and Gold dropping nearly 5%.
However, some form of normalcy can be achieved following a period of panic.
Once global economies settle into the “new normal”, trading may resume with some sense of normalcy indicated by improving markets. Panic trading will halt as more traders make logical choices having seen the effects of a market in fear. This will help improve the price of assets which is key to regaining what was lost during this COVID-19 pandemic.
Featured Image Source: Wikipedia