Price AnalysisBitcoin

Bitcoin Sheds Millions in Minutes; Quick Rebound Gives No Relief

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Bitcoin has left no loose threads in the loop as it trades around $5,000, retaining strong support at $4,000.

However, there happens to be a perplexing situation as we see two trading extremities within a fraction of minutes viz., BTC price nosediving to a rock bottom at $3,800 in 13 minutes, while gathering all its strength to spike above $5,000 in approximately 15 minutes. Reviving the drop of 2018, BTC took 2 weeks to dip from $6,000 to $3,000, while this time, it was faster than we could even realize. As per the analysis of the market, a 50% drop is not just a pullback or correction, but an alarm to a recession.

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The crypto lovers and believers are likely to get long in this dip, while others panic, which is likely to lead to selling pressure. If the supply increases, the price is likely to descend even lower, making way for additional Bitcoin and crypto investors.

Moreover, the bounce off $3,800 would look quite promising, but the current trade is right above the immediate resistance at $5,000. Undoubtedly, we are going to capitulate new lows if BTC continues to trade with utter bearish momentum while the volatility still exists. Then, the support to look out for awaits at $3,500, $3,300, and $3,150.

Although, whatever the situation may be, we cannot see the coin testing the bottom at $2,000 this early. We aren’t… right?

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BTC/USD Chart By TradingView

BTC price dips below 200-day MA after 2 and a half years of positive outbreak. We aren’t seeing $2,000 this early because BTC doesn’t seem to be weak, although the support to look out for on the weekly chart lies at $1,500.

And what else are we seeing? Trading volume ramps up as the price shocks the market. It looks like the exchanges were all ready with an infrastructure to support the bear market. Embracing the brief fall of the coin below $4,000 to the novel Coronavirus is a sure shot thing as the markets worldwide suffer.

The well-known economist and stockbroker, Peter Schiff, reliefs the burning thoughts of crypto investors as he says that is the markets crash at the same rate, the difference between having Bitcoin and not having any Bitcoin will be too small to matter. Is this the end? Are we soon going to watch BTC touching $2,000?

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Well, the hourly chart is no exception as Bitcoin loses imminent support from 50-day and 200-day around $8,900 and $8,400, respectively. The selling pressure becomes dense as the investors panic, and RSI drops below 30 at $17.07.

Mehak Punjabi

Mehak Punjabi is a post graduate in MBA with specialization in Finance and has joined CryptonewsZ with a skill building view in the world of cryptocurrency and blockchain. She is dynamic and a quick learner with a hold on financial analysis.

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