Bitcoin Prices Losing Strength as COVID-19 Slows World Economies

Bitcoin Prices Losing Strength as COVID-19 Slows World Economies

Bitcoin prices are losing strength as news turns neutral and international trade slows due to external factors.

This drop could be fallout from the financial market slump due to COVID-19 virus stalling world economies.

Long Term Analysis

The trend could head to $8000 support, during current zig-zagging distribution action. Volatility should be much less while international trade slows down. Present sell-off professional anticipation explained last week, would speed values to lower levels if we add to the analysis of some external factors. These factors may confuse venture decisions in favor of traditional financial refuges like gold or commodity. At the same time, the current COVID-19 crisis introduces crypto to consideration at every decision table, officially sowing the topic with Institutional Investors mid and long terms. External factors like news, personal opinions from YouTubers and several financial reports, suddenly stopped stimulating the general sentiment by announcing bullish forecasting. A consensus has declined to leave the quotes floating like ducks at a shooting gallery. To sustain the bullish mood, values would step back to $8000 or below, synchronizing prices with all development theories.

Mid Term Analysis

The trend started stepping back below the current level, due to every technical indicator that had arrived already to their bottom limits. The bottom limits leaving prices alone and drifting at a distribution area. The good news is gradually disappearing among global trending. Values could drop below $8000. Thus delaying the wishful thinking of a chance to bounce back and go up across the distribution area to overcome $10000 shortly. Several development theories consider a bearish correction is in process. If the trend confirms, it will coincide with halving´s now available offer and should delay any rise chance to next quarter.

Short Term Analysis

While several development theories driving down the trend, the Japanese Candlestick offer´s crows got stronger boosted by Fibonacci retracement numbers. They kicked demand´ soldiers out from the fairy battlefield defined between $8000 and $10000 while following Elliott´s 2nd Wave. When the soldiers arrive at $8000, they could try to re-organize to strike back from support and re-enter the action. Yet victory does not seem to be in sight even there.

With the logistical advantage of the technical indicators on their side to support a dignified defense of that level. A lateral market would emerge and it hardly should stay near $7500 waiting while halving´s renewed offer strengthens the crows to send the action possibly below $7000. The lateral move is reinstalling the former battlefield we have seen during December 2019. On the other hand, bad global news and political factors like a breaking war and the COVID-19 virus could reinforce the demand soldiers from $7500 to intermediate levels and drive prices to higher levels.

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

Bitcoin Price Is Struggling to Scale 10000 but It Could Explode Due to Halving

Bitcoin Price Is Struggling to Scale $10,000 but It Could Explode Due to Halving While BTC is rather unstable today, according to Google Trends data, as well as to other factors, we can suggest that the Bitcoin halving in May will cause a spike in the BTC price. As Bitcoin’s upcoming halving draws closer, the […]

Learn More

US Justice Dept Convicts Two Romanians of Cybercrimes Including Cryptojacking

US Justice Dept. Convicts Two Romanians of Cybercrimes Including Cryptojacking                                   A federal jury has convicted two Romanian alleged cybercriminals of spreading malware to steal credit card credentials and illicitly mine cryptocurrency, an announcement from the official website of the United States Department of Justice revealed on April 11. The malware allegedly spread by the […]

Learn More

A Brief History of the SEC’s Reviews of Bitcoin ETF Proposals

A Brief History of the SEC’s Reviews of Bitcoin ETF Proposals             It may span only a couple of years, but the history of Bitcoin exchange-traded funds (ETFs) and the United States Securities and Exchange Commission (SEC) is already a long one. Back in March 2017, the SEC rejected the application for a Bitcoin ETF put […]

Learn More

Leave a Reply

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