Thursday, April 9, 2020

Is Bitcoin entering the new bear market? Analysis

The Takeaway:

Bitcoin witnessed several positive rallies this year, but the last couple of days were not so good for the leading cryptocurrency. The price of bitcoin has slumped down to nearly $9,000 from $10,000 last week. In this article, we analyze if bitcoin is entering the new bear market.

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The price of the leading cryptocurrency, bitcoin has been quite volatile over the last few weeks. Bitcoin is currently nearing the $9,000 mark after it reached $10,000 for the first time in 2020 earlier this month. Even in the past, bitcoin has failed to gain any stability within the five-figure price region. 

 

Bitcoin continues to remain volatile

The leading cryptocurrency, bitcoin, has remained highly volatile over the last few weeks as its value continued to fluctuate between $9,000 and $10,000. Sellers have also not been able to catalyze any sustained downward movement throughout BTC’s recent uptrend either. Bitcoin is expected to remain volatile for a while.

Note:  At the time of writing bitcoin is changing hands at $ 9,145. If you are in India, you can check BTC to INR here.

 

Bitcoin is likely to enter a bear market

Bitcoin began the year 2020, with below $7,000, and witnessed some positive rallies in the last one and a half months. The price of bitcoin even crossed above the psychological resistance level of five-figure for the first time this year earlier. Several analysts believe that bitcoin might be entering a bear market after the price of bitcoin slumped down nearly $9,000 this week. If bitcoin drops, any further a bear market is on the horizon. Rush Login is a useful trading platform for bitcoin enthusiasts and traders. 

 

Impact of Coronavirus on the market

The mysterious coronavirus that emerged from the Chinese city of Wuhan has been spreading all around the world as the World Health Organisation declared it as an international health emergency. With the fear of coronavirus slowing down the global economy, several investors are turning towards bitcoin as a safe heaven. The virus has impacted the economy of China as institutions halted their operations to contain the virus. 

 

A drop to $9,000 is not enough to invalidate the current bull run

According to several crypto trend analysts, it is not enough to invalidate the cryptocurrency’s bullish market structure. The shift in the market will only occur once it breaks below the mid $8,000 region. In order for bitcoin to remain bullish, the price will have to reach above the $10,000 mark soon, where it faces the resistance level of $14,000. The leading cryptocurrency is at a crucial point as a drop below $9,000 could lead it to a downward spiral, and bears will gain control of it. 

 

The trading volume of bitcoin drops

Over the past few days, the bitcoin trading volume has dropped quite a lot, which could imply that a big move in the market place is about to take place. If bitcoin fails to hold the $9,400 level for support, it is highly likely that a downward rally is on the corner. The downward rally could take the price of bitcoin to the $8,000 mark or below. 

 

Conclusion

The leading cryptocurrency started the year at 46,900 and moved above $10,000 earlier last week. However, the glory for bitcoin did not last long, as the price slumped down quickly. Currently, Bitcoin is at a very crucial stage. If it fails to hold the current support, the bears will gain control of the market. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Dorsey Gray
Dorsey Gray
Dorsey works in the oil and energy industry since he graduated as a mechanical engineer from Bagdad Senior High School. However, he loves to explore and write about the financial world while he sits in the balcony of his beachside room. Dorsey also loves to cook, but just for himself.

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