Bitcoin Prices Losing Strength as COVID-19 Slows World Economies
Bitcoin prices are losing strength as news turns neutral and international trade slows due to external factors. This drop could be fallout from the financial market slump due to COVID-19 virus stalling world economies.
Long Term Analysis
The trend could head to $8000 support, during current zig-zagging distribution action. Volatility should be much less while international trade slows down. Present sell-off professional anticipation explained last week, would speed values to lower levels if we add to the analysis of some external factors.
These factors may confuse venture decisions in favor of traditional financial refuges like gold or commodity. At the same time, the current COVID-19 crisis introduces crypto to consideration at every decision table, officially sowing the topic with Institutional Investors mid and long terms.
External factors like news, personal opinions from YouTubers and several financial reports, suddenly stopped stimulating the general sentiment by announcing bullish forecasting. A consensus has declined to leave the quotes floating like ducks at a shooting gallery. To sustain the bullish mood, values would step back to $8000 or below, synchronizing prices with all development theories.
Mid Term Analysis
The trend started stepping back below the current level, due to every technical indicator that had arrived already to their bottom limits. The bottom limits leaving prices alone and drifting at a distribution area. The good news is gradually disappearing among global trending. Values could drop below $8000. Thus delaying the wishful thinking of a chance to bounce back and go up across the distribution area to overcome $10000 shortly.
Several development theories consider a bearish correction is in process. If the trend confirms, it will coincide with halving´s now available offer and should delay any rise chance to next quarter.
Short Term Analysis
While several development theories driving down the trend, the Japanese Candlestick offer´s crows got stronger boosted by Fibonacci retracement numbers. They kicked demand´ soldiers out from the fairy battlefield defined between $8000 and $10000 while following Elliott´s 2nd Wave. When the soldiers arrive at $8000, they could try to re-organize to strike back from support and re-enter the action. Yet victory does not seem to be in sight even there.
With the logistical advantage of the technical indicators on their side to support a dignified defense of that level. A lateral market would emerge and it hardly should stay near $7500 waiting while halving´s renewed offer strengthens the crows to send the action possibly below $7000.
The lateral move is reinstalling the former battlefield we have seen during December 2019. On the other hand, bad global news and political factors like a breaking war and the COVID-19 virus could reinforce the demand soldiers from $7500 to intermediate levels and drive prices to higher levels.
What do you think will happen to the bitcoin price? Share your predictions in the comments below.
If you find Ramiro’s analyses interesting or helpful, you can find out more about how he comes to his conclusions by checking out his primer book. The Manual de Análisis Técnico Aplicado a los Mercados Bursátiles.
The text covers the whole range of technical analysis concepts, from introductory to advanced and everything in between. To order, send an email to [email protected]
Images via Pixabay, Ramiro Burgos
This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.