The historic plunge in the prices of Crude oil has sent tremors throughout the financial markets. Cryptocurrencies such as the BTC, Ethereum (ETH), and Ripple (XRP) dropped in unison following the oil plunge.
However, the drop in Bitcoin’s price has more to do with its fundamentals and less to do with oil. BTC has almost zero commercial usage. Therefore, Coronavirus or any other pandemic would have a negligible effect on the supply and demand of Bitcoin. The only impact of a pandemic on cryptocurrency would be on investor sentiment.
BTCUSD price analysis and movement
- Bitcoin had surpassed the $7,200 mark last Friday. But, it has majorly stayed below the $7k mark this week. The day’s range for BTC today is $6,832.47 — $6,922.33.
- Here’s the four-hour timeframe price chart for BTCUSD. We can observe that BTC has moved on the same channel for quite some time. The ceiling and floor were the same for the past few periods when Bitcoin entered this zone. The lows have continued to be lower. The lack of volume and the current macroeconomic conditions could propel BTCUSD to drop to $6,508 in the short term, in case Bitcoin breaks the floor and starts declining.
- A decline in BTCUSD seems more imminent if we take a look at the daily chart. It shows the domination of the bear market. The green candles were tiny, indicating the fact that market manipulators caused the prices to rise.
Bitcoin reward halving would be a turning point
On top of all the technical indicators, the reward halving that will take place sometime in May will be a crucial moment for BTC. The prices of BTC have historically increased after every halving. But before the halving takes place, BTCUSD could fall further. A range of $5,500- $5,800 seems a highly likely target. That would be, in fact, an excellent time to invest in Bitcoin. Till then, patience is the key!
