Recently, the coronavirus epidemic seemed to spread faster to other countries increasing the fear of possible market uncertainty. This fear drove markets down in many parts of the world. As equities all over the world plunged because the situation was getting worse, Bitcoin also took a hit. Yesterday, it crashed 3.07% for the same reason.
At the time, analysts assumed that if it continues to drop further, the next support level considering the asset’s 200-day moving average would be $8,800. Bitcoin has now crashed that low with a loss of almost 6% and is currently trading at $8,804. It has now seriously wiped out a huge chunk of its 2020 gains.
The crash seems to be holding quite consistently and a further drop below the $8,800 Ievel possible. If this happens, support levels at $8,200 as well as $8,000 will be activated.
For some, the plunge is a direct consequence of the worsening coronavirus. While this can be considered, it would take a swipe at Bitcoin’s safe-haven status in times of uncertainty like this. Usually, events like this trigger a rise in Bitcoin’s value, putting it in the same group with gold. Now, it looks like only gold is steady.
For other people, the Bitcoin reversal might just be a correction. Some analysts believe that the asset’s recent performance over the last few weeks will be corrected. This correction is probably what is happening right now.
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