Bitcoin, at the time of writing, was trading around $5,000 and is observed drawing higher lows after marking an apex at $20,000, followed by $13,000 and $10,000 in the recent past. Important to note that the BTC had recorded the highest trading volume bar during this recent collapse when the price slid below 200-day MA testing support at $3,800.
Bitcoin Price Analysis
The market is currently trading around critical supports and is appearing flat until there happens to be a sharp bullish or bearish price turn. Alongside, we also see an apex forming and taking the same in a pessimist way; the price of Bitcoin is likely to nosedive even further. The recent pullback below the 200-day EMA has been quite panicking as the coin lost over 50% in less than 24 hours from the intraday high of $7,999 to the yearly lowest at $3,800. This happened to be unpredictable, and the market is yet to recover from this dip amidst the widely spreading Coronavirus, resulting in global crises and economic lockdown.
Having a candlestick close below 200-day MA is a clear signal that we are shedding gains limitlessly, and a quick rebound is the only escape. As per the historical trend observed in Bitcoin price, we have seen that the coin has time and again proved itself after slumping harsh and then running into a Bull Run.
However, not just BTC but the whole crypto market, Wall Street, which includes the major indices like Dow Jones, S&P 500, NASDAQ Composite, Asian markets have been facing a dearth of momentum and support. As the fears of Coronavirus and its outbreak outweigh, there have been severe global crises resulting in the investment system to slow down and turn red as we see the bottoms.