Bitcoin started its decline a few days before the Easter holidays in the US. The plunge began on March 12 when Bitcoin disassociated its uptrend from the US equity markets. While most sectors in the S&P 500 turned green, BTCUSD lost more than 10% in a couple of days.
As of writing this article, Bitcoin traded at around $6945.2.
BTC/USD Chart from TradingView.com
Some analysts predict that this drop by Bitcoin (BTC/USD) could be the tip of the iceberg
The US Labour Department revealed that a total of 16.8 million people in the US filed the ‘Unemployed’ report in the past few weeks owing to the COVID-19 pandemic.
With situations worsening worldwide, this drop of Bitcoin could only be the beginning of a much bigger decline.
The last couple of days witnessed a massive selling in Bitcoins. Analysts claim that this sell-off indicates people wanting to book their profits and exit this highly risky asset.
Bitcoin trading volumes continue to be less after the massive sell-off
- The technical point that the traded volume of Bitcoins has been pretty low. This indicates a lack of any potential Bull in the market.
- The daily, as well as the four-hour Japanese candlesticks formed by the BTCUSD, are having a small body. This suggests the Bitcoin might be entering a consolidation phase before a much bigger drop.
There might be a potential for a ‘long’ trade in Bitcoin soon
With the rapid fall in Bitcoin, a lot of investors have started to panic. However, several investors predicted a drop was near and were waiting for it. As the famous investor, Warren Buffett puts it, the best time to buy would be when others are fearful.
Investors waiting for the Bitcoin’s fall should wait until it stabilizes and then look for probable indicators of a Bottom out approach.