Currently, bitcoin is changing hands at just above $5,900, 11.4% down in the last 24 hours. The short-term prediction for bitcoin price is quite bearish as it is expected to fall below $5,000 in the coming days.
Is bitcoin decoupling from traditional markets?
In the midst of the global pandemic, the financial markets all over the world are crashing and bitcoin is reacting accordingly. The price of bitcoin surged above $6,900 yesterday before retracing back to below $6,000 today. Several have claimed that bitcoin might be decoupling from traditional markets, but today’s price movements reflect otherwise. Despite announcing several stimulus packages, the government has failed to revive the economy all over the world as markets continue to crash.
Bitcoin likely to drop below $5,000 in the coming days.
In order for bitcoin to avoid a free fall to $5,000, it needs to break above the resistance level of $7,000. Several crypto analysts have predicted that the bear flag is still in play. The price of bitcoin is likely to drop below $5,000 in the short-term before it gains a positive momentum. Bitcoin and other cryptocurrencies are not immune to the global pandemic that we are facing at the moment.