COVID-19 Causes Bitcoin Value Drop to 4000 Starting a Zig-zag Action Could Set a Three Month Lateral Market

COVID-19 Causes Bitcoin Value Drop to $4000 Starting a Zig-zag Action Could Set a Three Month Lateral Market

COVID-19 is making its way around the globe, so markets have been shedding value at a fast pace.

Bitcoin value is not immune to this as it has disrupted people’s normal activities which can include trading online. Bitcoin shines in that unlike cash and many fiat transactions everything can be done without handing over cards or exchanging paper/plastic money covered in germs. Contactless payment, send and receive without ever having to be face to face. Much fiat is also digital but still relies on cards, checks, and cash for the final exchange in many cases.

All markets are going to be volatile as the world goes towards finding out just how COVID-19 will affect people. This uncertainty along with people not being able to go to work in many cases will keep this trend going. It will continue until there is more information on the long-term effects on humanity.

Long-term Analysis

Trends dropped the price to the $4000 support level, as the distribution area settled above $7000 consolidating in the sell-off the range. After quotes and technical indicators synchronized, volatility should arise in a zig-zag pattern. Following Elliott Wave Theory, the action should bring values back up to $6500. As international trade gears back to normal business, external factors and news will bring a natural integration of Bitcoin into global portfolios as an accepted asset. On the other hand, when the bullish sentiment gets back, values would go lateral between $4500 and $6500. Continuing until halving happens in May.

Mid-term Analysis

After dropping to $4000 support levels, prices could balance as offer plus demand forces start a new side-ways movement. The movement could run between $4500 and $6500. According to Gann Angles Theory, the first movement took quotes to $5500. Some corrective movement would be expected. If this forecasting is confirmed, a new lateral market would balance the trend for about three months. Preparing a bullish breakaway signal for April after the halving, when prices should try to overcome the mentioned resistance. If backed by good News and possibly some new global trade scenario, which could include Bitcoin as part of institutional financial tools to be in consideration.

Short-term Analysis

The Japanese Candlestick fairy Analysis confirmed that the crows got stronger than ever, kicking the demand soldiers out from the last fairy battlefield. This battlefield is defined between $8000 and $10000, going directly to $4000, to end the 5th Elliott´s bearish wave. Following the same theory and backed on Fibonacci retracement numbers, the next stage could be a zig-zag ABC pattern to the upside.

It should have prices heading near $6500. An intermediate sustaining area arises as plenty of volatility is starting, to wait on halving before Soldiers reorder themselves to clash against the crows. Doing this they might have a chance to prevail. The technical indicators finally synchronized with prices. Even with those grounds, they are only available to defend $4000 levels as support. Forcing crows to enter a new battlefield for 3 months, between $4500 and $6500. Please keep safe while COVID-19 sweeps the world. The markets will be volatile and keep being that way for the next few months. The bitcoin miner reward halving is also going to have an impact in the near future. When the emission rate of new coins is halved it should have a positive effect on bitcoin value. Yet keep in mind it’s effects may be muted for months until the world finds it’s new normal in living with this new virus.

Article Produced By
Ramiro Burgos

Ramiro is a technical analyst specializing in stocks, futures, options and Bitcoin. He provides weekly analysis on the bitcoin price for Bitsonline. Based in Buenos Aires, Argentina, Ramiro has worked in the financial industry since 1987, with his technical analyses appearing in local and global news publications.

Related articles

Blockchain-for-Land: What We Are Getting Wrong and How to fix it

Blockchain-for-Land: What We Are Getting Wrong and How to fix it              The flurry of activity related to blockchain-for-land over the past few years is impressive, with a num ber of firms working with land registries worldwide. Yet, skepticism is growing around the technology’s potential for land administration due to the fitful growth of various […]

Learn More

Markethive Uses OAuth? What Is It?

. Markethive Uses OAuth? What Is It?  When setting up an account with a new service and they request registration via your social account, is it secure? What exactly is OAuth?  To begin at a high level, OAuth is not an API or a service: it's an open standard for authorization and anyone can implement […]

Learn More

Crypto-Broker Instacoins Receives Operating License in Estonia 0 123

Crypto-Broker Instacoins Receives Operating License in Estonia 0 123 Instacoins Estonia OÜ, a cryptocurrency brokerage, is pleased to announce it has received an operating license Last year, Estonia tightened its regulations on preventing money laundering and criminal activities in connection with crypto-currencies and licensing virtual currency service providers.  Following these measures, the Estonian licence has re-enforced […]

Learn More

Leave a Reply

Your email address will not be published. Required fields are marked *