Bitcoin seems to be on a freefall after several key Technical indicators point towards a further decline. Investors found themselves in a state of fear of loss of capital and rushed towards exiting the cryptocurrency.
Bitcoin witnessed massive selling as prices plunge
Bitcoin exchanges such as Bitmex, Bitfinex announced that they are seeing an enormous drop in Bitcoin reserves. And this could be a terrible sign for all Bitcoin enthusiasts. An abrupt increase in selling would result in an uncontrolled nosediving of the BTCUSD prices. With the Bitcoin halving coming in less than a month, analysts fear that this might be one of the worst periods for the cryptocurrency.
Technical indicators that point to near term Bearish outlook of BTCUSD
The day’s range for Bitcoin stands at $6,562.00 — $6,905.14. As of now, Bitcoin is at $6,722, which is almost a $190 drop in the BTCUSD.
- The Moving Average (MA) indicators point to a strong sell of Bitcoin.
- There was a crucial support in the $6,700 zone. Bitcoin retested the region and fell below the support. This indicated that the Bears are in control.
- Bitcoin gained some momentum when it touched $6,900, but it failed to keep up. The pivot is now at $6,518.26, and it will be interesting to see how Bitcoin moves from here.
- Another significant support exists at $6,600. However, falling below this support could spell doom as Bitcoin could reach the $4k mark.
Macroeconomic factors stand against the Bitcoin due to Coronavirus scare
- Logically, a significant fall in prices should attract prying investors who keep looking for bargains. However, the current economic conditions are such that investors are shying away from the BTCUSD.
- Historically, it has been witnessed that before each cycle of reward halving, Bitcoin prices have reached all-time highs. However, it has been the opposite scenario this time around.
The fightback against the COVID-19 pandemic is set to impact not just the Bitcoin universe but also the other Financial markets.
