While traders were expecting Bitcoin to grow higher amid moderate bullishness in the previous week, the coin, along with the whole market, has straight away taken the downward path. The currency has pulled the crypto investors on edge with its recent and sizable loss in its valuation.
Bitcoin Price Analysis
Bitcoin (BTC), over around a couple of days, has washed off all the gains that it managed over a little less than two months. As we all know, this recent price decline is mostly attributed to Coronavirus, and it seems WazirX CEO, Nischal Shetty has sparked the debate even further with a tweet.
#Bitcoin not in a good mood?
Who annoyed Bitcoin?
— Nischal (WazirX) ⚡️ (@NischalShetty) March 9, 2020
Many have answered ‘Coronavirus’ to this, while there are a few who have opined that this has something to do with the upcoming Halving of Bitcoin. While the crypto community is busy making speculations, Bitcoin price is vigorously stretching its support levels downwards. The coin started to drop on this weekend and is still not convinced enough for recovery.
The 5-day chart clearly depicts how the BTC price went above $9000 from $8757 and then sharply plunged below $8000. It has noted a price drop of more than 15%, and currently, it is testing support levels at $7810.
At this moment, MACD is in the bearish zone with its MACD line on the upside. Meanwhile, the Bitcoin is well below the EMA line noting bearish pressure. In this scenario, investors fear that the coin, along with the market, may go dipper. The long-term price trend of BTC also affirms the same:
Is #Bitcoin forming a head and shoulders on the 4-hour timeframe?
If confirmed, with break below neckline, the target will be $6,580 with a 51% chance of being hit. pic.twitter.com/ijIa6ZvMEU
— The Moon (@TheMoonCarl) March 8, 2020
The tweet notes that BTC/USD will be trading all the more bearishly below $7000 to test price levels at $6580. It is a possibility that the coin, that has traveled really far to gain the trust of mass considering its uncertainty, may get questioned for its reliability due to the recent price drop. A recent tweet triggers questions regarding its strength while it points out how Bitcoin consumes too much energy:
— yag (@YAG33033) March 8, 2020