The month of May began with a devastating blow to the major indices on Wall Street. The Dow Jones Industrial Average (DJI) ended 622.03 points lower. The broader S&P 500 index (SPX) went down by 2.81%. The hardest hit was the tech-rich NASDAQ Composite Index that lost 3.2%. Cryptocurrencies such as BTCUSD, ETHUSD, LTCUSD, XRPUSD, XTZ, BCH were, however, remained unaffected by the massive sell-off in Wall Street.
Earlier on, towards the end of April, the Dow had a brilliant recovery from its losses. The reversal was the best since 1987. However, US President Donald Trump warned of special tariffs against China on Friday. It comes as retaliation against misinformation spread by China about the Coronavirus.
The good news is BTCUSD remained unaffected
Analysts said that it was not a good time to announce tariffs, leading to trade cut-offs amid such a crisis. Bitcoin investors were on their toes on Friday following the dip in the equity markets. And their concern was justified. BTCUSD was replicating the equity markets for quite some time now.
Although Bitcoin lost its steam after it reached the $9.5k mark recently, this drop was not that steep. The silver lining could be that Bitcoin investors might regain the faith in BTCUSD.
BTCUSD price analysis and prediction
BTCUSD Chart, Source: TradingView.com
As of writing this article, BTC traded at $8,777.47. The day’s range so far is $8,777.47 — $8,919.49. Let’s take a look at the daily timeframe for BTCUSD.
We can see the red candle after a series of green candles for the BTC. And that is fine until and unless there is an enormous decline.
One cannot ignore the current economic scenario. Factories are getting shut down. The need of the hour is reviving the economy. More than 30 million people have lost their livelihood already due to the Coronavirus. And frankly, with its negligible commercial usage, BTCUSD does not add any particular value to the economy at large.
What does the long term scenario for BTCUSD look like
BTCUSD Weekly Chart, Source: TradingView.com
To understand what the long term aspect for BTCUSD looks like, we need to increase the timeframe. Let’s look at the weekly chart for BTCUSD.
The weekly chart shows that all the candles recently are green. Moreover, from the period of March 20 till now, BTCUSD rose by almost 67%. That is an enormous jump, considering the current tumultuous times.
Therefore, investors should stop chasing BTC. And let the BTCUSD come to a suitable price-point. Over a long term period, Bitcoin has undoubtedly proved its ability to rise significantly. Investing is all about buying an excellent asset at a fair price.