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Stock Market Crash: Will Bitcoin Crash too?

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Following the stock market crash, bitcoin along with other cryptocurrencies have also started to fall over the last few hours.

The stock market including S&P 500, the Dow and Nasdaq are all plunging more than 3%, Boeing and General Motors more than 5% and Polaris Industries experiencing around 10% crash in the last 24 hours.

Following the stock market crash, bitcoin along with other cryptocurrencies have also started to fall over the last few hours. Yesterday, Bitcoin price was steady above $3900 and traded between $3900 and $4000. As the stock market crashed, the price of bitcoin is on a downfall below $3900 and is currently in a bearish momentum being traded around $3895 (at the time of publishing). The price is expected to fall further.

 

History of correlation

Last year’s bitcoin and stock market graph shows that after bitcoin experienced an all-time high of $20,000, just a little time after this, the stock market started growing rapidly.
Later in February this year, when bitcoin fell towards $6000, the stock market pattern also looked similar when stocks such as S&P 500 had its worst single-day fall since 2011.

Sentiment plays an important role where traditional assets such as stock and novel assets such as cryptocurrencies correlate.

 

Bitcoin Price Analysis


 

Bitcoin is currently being traded at $3895 (at the time of publishing) according to CoinGecko with a major bearish trend line set with resistance close to $3950 which may lead to a further downfall and bitcoin may test the support range of $3600 once again.

Bitcoin is currently experiencing the worst days of the year which started with the bitcoin cash hard fork in November this year when bitcoin was trading around $6500 and crashed down up to $3600 at the end of the month. The price has been trying to recover since then but the resistance around $4000 and $4200 has been creating a hurdle for the price to rise above this range.

As market analysts were previously predicting that the ‘low’ is still not achieved and bitcoin may further fall up to $2500 or even below $2000 this year end, the stock market crash has added fuel to the fire. In the 24 hour chart, there is a bearish trend line created with resistance at $3880 and the support lies around $3800.

This article is not a financial advise. You should do your own research and due diligence before investing or trading in any digital assets.

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#Bitcoin

Donald Trump policies push Mexico to Bitcoin

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Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse.

Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse that remittance payments of Mexican migrants in the United States of America will potentially be the target of new restrictions essentially ending the possibility of Mexican migrant workers to be able to cheaply send money back home to their families.

 

Mexico adopting Bitcoin:

Mexico has been experiencing a massive increase in the number of transactions on localbitcoins. Mexican migrant workers are believed to be exploited by the remittance companies which are charging around 10% fees. What is essentially being discussed here by the Trump Whitehouse is a new tax on these migrant workers. The number that they are currently floating around is a 3% tax on the remittances going from the USA to Mexico. This may not seem super crazy but considering the $33.4 billion which were sent to Mexico in 2018 alone, that extra 3% could mean $1 billion more per year for the United States government.

 

98% of the transactions that were sent during the last year, were sent via electronic means which means that there is actually a very strong remittance route that is ready for mass disruption going from the United States to Mexico and Bitcoin could be the perfect answer. However, the average size of a remittance payment from the United States to Mexico is $322 last year and the problem is that if the fees rise again exponentially on bitcoin, then bitcoin might not be the ideal cryptocurrency for these kinds of smaller remittance payments. Maybe we are going to see some other cryptocurrency being adopted in that situation. But regardless of which cryptocurrency is used, we can see that there is a clear need for disruption as government policies again seeks to impede or overly exploit the free float of money.

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Bitcoin Crashes Downwards: Is BTC Going to Fall Back to $4000?

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Bitcoin fell down to test the $5000 support level. If the current support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels.

Bitcoin fell down to test the $5000 support level which is the most crucial level for BTC currently. The downward correction started after bitcoin tested the $5500 resistance level yesterday at around 18:00 UTC.

 

The resistance around $5500 proved very strong and pushed the price downwards sharply. The sharp declining pattern attracted a lot of sellers which even pushed the price below $5200 support level and BTC tested the $5000 support reaching up to $5018.

BTCUSD Price Chart- Coinbase

BTCUSD Price Chart- Coinbase

Bitcoin is currently trading around $5070 (at the time of publication) showcasing a bearish pattern.

 

Bitcoin Price Drop:

The sudden price drop has led to people speculating that BTC might soon crash back to the $4000 range. Earlier, analysts were also predicting the sudden rise of bitcoin to be a conspiracy. Also, Bloomberg had also called the sudden rise a Blip. If BTC had successfully crossed over the $5500 range, the next major resistance was around $5800, however, BTC fell sharply losing more than $400 in value over the last 24 hours.

 

The bearish move does not clearly indicate a crash towards $4500 and $4000 range, however, if the current major support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels. With the price of bitcoin falling, other major altcoins are also in the red zone today with Ethereum falling more than 8% in the last 24 hours, XRP falling more than 6% and Litecoin falling around 12% in the last 24 hours.

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China to completely ban crypto mining: Bitcoin about to Crash Hard?

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As reported by Bloomberg, China is moving towards putting a complete ban on mining bitcoin and other crypto as it causes serious wasatage of resources.

As reported by Bloomberg, China is moving towards putting a complete ban on mining cryptocurrencies such as bitcoin. In accordance to a document posted by the National Department and Reform Commission of China, the mining of cryptocurrencies should be completely banned as it causes serious wasatage of resources.

 

China is known to be the largest hub of cryptocurrency mining with huge mining rigs been set up in the country. Earlier, China has also banned small investors to invest in security token offerings or STOs and only large investors with more than $1 million funds are allowed to invest in such projects. Now, the country is planning to take strict action against cryptocurrency miners in the country.

 

Cryptocurrency miners were earlier attracted to China due to their cheap electricity rates and subsidies in the country, however, due to the strict actions being taken by the government with the guidelines of the NDRC which has disincentivized cryptocurrency mining, a lot of miners have shut down their operations or moved to other nations.

 

Largest Mining Pools in China:

China has been a hub for some of the largest cryptocurrency mining polls. Even though the mining pools have been shifting to other countries, there has been some effect of the ban on the market for bitcoin and other cryptocurrencies as the mining is a major part of the overall working of cryptocurrencies.

 

How do you think the complete ban on cryptocurrency mining in China will effect the bitcoin price? Tell us in the comments section below.

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