With many variables affecting the market, Coronavirus happens to be the talk of the town, and little did we know that this would crash the markets worldwide and lure away all the investor wealth in seconds.
- Bitcoin (BTC), at the time of writing this analysis, was trading around $7,800 after recording a dip at $7,630.15
- BTC/USD forms a Head & Shoulder pattern on a 4-hourly chart conforming the bullish-to-bearish trend reversal
- The current dip of BTC lacks support from the daily 50-day and 200-day Moving Average
- 20-day Bollinger Bands project about the volatile trading days ahead as it widens
- The major support for the coin lies around $7,600, while, the major resistance is at $8,000
Bitcoin is no longer a non-correlated asset. It's positively correlated to risk assets like equities, and negatively correlated to safe-haven assets like #gold. When risk assets go down, #Bitcoin goes down more. But when risk assets go up, Bitcoin goes up less. No value in that!
— Peter Schiff (@PeterSchiff) March 10, 2020
Elaborating on the above tweet by the renowned broker and economist, Peter Schiff, Bitcoin, and other cryptocurrencies have made their way amidst the other promising investment avenues like stocks, gold, bonds, futures, etc. While it made its way as a premier investment asset, Peter Schiff believes BTC to be directly or positively correlated with the risk attributed asset and inversely or negatively correlated with the haven assets.
Now the question that surrounds that is that really the case?
Aligning our thought to the investment market technicality, we believe that regulating the market will help it correlate with other investment avenues in a better way. Until it keeps running on the basic rule of Economics, i.e., demand and supply, the crypto or Bitcoin whales are likely to snatch away everything, and the layman will consider himself to be incapable.
After being legal in India, in the previous week, the crypto market is likely to get many potential investors with little denominations invested comparatively. And, being exposed to this volatility, it is likely to question the security of the capital invested and appears as a pure gamble. However, comparing BTC with gold appears baseless to us as the two have many demarcations.
Bitcoin Price Analysis
Analyzing the above 4-hourly movement of Bitcoin against the US Dollar, we see a head & shoulder pattern that has formed and confirm the forthcoming bullish-to-bearish trend reversal after the same. Thereby, we are likely to see a further price reduction due to the upcoming volatile days as per the widening 20-day Bollinger Bands. The bottom price hit by BTC is acting as the major support around $7,600, while the immediate resistance lies around $8,000 followed by $8,200. However, a further fall is likely to test supports at $7,500 and $7,300, turning the price of Bitcoin totally bearish.
The technical indicators laid are giving bearish signals as the MACD of the coin is seen making attempts to rise above the signal line as the price of BTC rises above the weekly bottom of $7,600. Also, click here to find more details about Bitcoin predictions.
Similarly, the RSI of the coin is at 36.02 and is seen rising from the oversold region as Bitcoin tries to lighten the selling pressure. With the Bitcoin price facing a rapid decline, questions, whether it is the right time to invest in cryptocurrencies, are doing the rounds. Crypto enthusiasts are now recommending investments. So, what are you waiting for? Come on board btcloopholepro.com and indulge in crypto trading.