- The past weeks have seen the price of Bitcoin react negatively to the outbreak of the coronavirus as the spread intensifies
- Bitcoin price analysis shows that investor confidence was restored after Bitcoin struggled to maintain price movement above the 200-day MA
- Last week was an eventful week for Bitcoin and other cryptocurrencies as nations around the world took a turn to reverse their stance on crypto assets
The Bitcoin positive market sentiment met with a glacier after Bitcoin took a big correction losing a significant portion of its 2020 gains. Bitcoin by some is perceived as digital gold because it is thought to possess most of the inherent properties of gold in a digital form. However, recent Bitcoin price analysis isn’t in line with this theory.
Amidst a rising number of cases of the coronavirus outbreak across the 6 continents, even the most traditional stocks have seen deep losses. Bitcoin traders had capitalized on the inverse relationship of Bitcoin price trend to traditional stocks, so many investors expected to witness Bitcoin continue on an uphill trend with decent positive gains during this period.
However, traders’ hopes were shattered after Bitcoin took a sharp dive down from the $10,500 mark. Bitcoin price trend maintained a steep decline from the 13th of February and reached a low of $8,412 on the 1st of march. Nevertheless, traders were optimistic after Bitcoin struggled and maintained its price range above the 200-day moving average.
This period saw some Bitcoin critics trolling the digital asset as most investors fled to Tether to cut down the risk of a continuous downslide.
While many argued whether Bitcoin was truly a safe haven, most Bitcoin fanatics took the stage to defend the noble digital asset. CEO of Galaxy Digital, Mike Novogratz took to his Twitter page to explain why Bitcoin reacted negatively to the global pandemic of the coronavirus:
“How did $btc go from being a hedge against bad stuff to getting washed out and trading like a risk asset? When things go from bad, to very very bad like they did last week, investors take leverage down as fast as they can. They book profits to make up for other losses. Ouch.”
Whether Novogratz is correct or not, most investors seem to share the same sentiment with him as many traders thought it was rational to book profit in the face of a falling global market. The big question on the lips of everyone now is, “what will be the future outlook for Bitcoin if the spread of coronavirus continues its pandemic march across the planet?”
2020 Halving – Bitcoin Price Analysis
The portfolio of Bitcoin as a hedge against political and economic uncertainties have been questioned for a long time. Proponents of the narrative have continued to defend the recent market action while citing how Bitcoin reacted during the U.S and Iran face-off.
Others have maintained that the notion of Bitcoin as a safe haven cannot be written off because gold also reacted negatively at the time Bitcoin price plunged.
In the face of all these debates, the prospect still looks very attractive for Bitcoin as the 4th Bitcoin halving draws closer. From Months down to weeks, the timer for the 2020 Bitcoin halving is ticking ever so fast. The price outlook for Bitcoin changes drastically within the span of the last 48 hours. It looked very bullish after testing the $8.4k support severely before making a price reversal. And no sooner it reached $9k mark, plunged yet again to trade below the $8k mark.
As at press time, Bitcoin is trading around the ~ $7800 range as traders look forward to the bullish reclaim of the $10k zone. The reclaim of the $10k region is not far away, as it could be a possibility in the midterm.
The Outlook As Most Nations Adopts Cryptocurrencies
Last week was eventful for Bitcoin and other cryptocurrencies as most Nations like India, France, and South Korea took a U-turn on their earlier pronouncement/ban on the use of Bitcoin and other cryptocurrencies. This is a major catalyst out of several events driving the upward movement of the price of Bitcoin after the recent slump.
Based on historical data, investors’ sentiment still looks bullish as many expect huge price action before and after the halving which is expected to take place at an approximate date in mid-may. CEO of BitMex, Arthur Hayes claims that a possible retest of Bitcoins’ all-time high is the major focus on Bitcoin price outlook as the community looks forward to this significant event.
It’s impossible to know what will happen in the future, especially with an asset as unpredictable as Bitcoin. But one thing you can count on is that the convergence of several *massive* catalysts will make the next few months very exciting for Bitcoin, especially from the perspective of a fundamentals analyst.