Cryptocurrency

Black Monday: How Bitcoin will rise or fall?

Yesterday mankind lived again a “Black Monday“, where the world market went from a green mild to a potent red. And Bitcoin (BTC) accompanied the market with figures also red. Once that is settled the dust, it is worth asking: how Bitcoin will rise or fall? The new epidemic of the Coronavirus may not have 100% of the blame. But, as many have said experts, “it is thanks to him that the investors we’ve noticed how bad everything is”. The red numbers were so atrocious as those seen in the year 2008. Had not seen something like that at a generalized level since the explosion of the bubble of the Subprime loans. Oil is down 30%, then Asian stocks followed the oil with a 6% – 7% drop. And in the morning were the indexes of the western world that collapsed between 8% and 10%. We are talking about thousands and thousands of millions disappeared from night to morning. Not exclusively by the Coronavirus, but by 11 years of virtually uninterrupted growth. Period characterized by impressions indiscriminate of money on the part of the united States and the European Union. It is true that our traditional economy is very bad. Just enough to see the news in our Latin america the past few years. And like us, they are all going through a similar situation. From european savers with negative real interest rates in the banks, to asian, with inflation very low and even negative.

Bitcoin is prepared

Unlike the previous global economic crisis, humanity has to Bitcoin. Although perhaps not at a pace so rapid it would be necessary to avoid that many people become to losing their homes and their life savings. All because of the bad management of the centralised institutions that play with money, that at the end of the account does not belong to us. It is a matter of us, all the inhabitants of this ecosystem, try to save the most that we can. But, another thing that is of concern to all, is the fact that it is assumed that BTC was created to be an alternative to the traditional system and to the normal crises of the system. But lately it has moved in unison with the tendencies of the world market traditional. Which leads us to ask ourselves: what Bitcoin will rise or fall after this black Monday? Here we bring you the two different visions for us to get an idea of what we can expect in the short or medium term if it continues to compound the effect of Coronavirus.

BTC will collapse

It is no secret that the last few weeks have been tough for Bitcoin as the main crypto has seen how they ruined his upward trend from the beginning of the year. Especially because there are a number of factors with respect to the sub-ecosystem of the miners, which could generate a worse scenario in the short term. These factors related to the mining seem to suggest that BTC may face an intense period of decline in the next two months. All this as we are about the long-awaited Halving. The recovery of sight to the early 2020’s, led to Bitcoin of minimum of $6.800 to maximum $10,500. This trend seemed to be incredibly strong, with many investors pointing to the Halving as the generator of all this. In spite of these opinions, the data on changes in the inventory of BTC the miners seemed to clarify some skepticism among them about the longevity of small Bull Run. The index data miner’s rolling inventory (MRI), showed that the miners were not selling much in the market. Suggesting that he had some doubts about the strength and liquidity of the market, despite its steady growth from a perspective of prices. In the short term, the crypto traders experts are pointing to $7.700 as a point of important resistance that could rescue Bitcoin from a fall even worse. These simple factors shows that the bearish trend may be far from over.

BTC will increase

Analysts are noticing widely that Bitcoin is just above a key region of support. So it is imperative that the Bull market will continue defending the short-term losses. An economic indicator widely respected shows that Bitcoin is still on track to see a significant recovery dish in the coming days and weeks. What could bring BTC to a recovery of up to $14,000 and then from there, to the moon. The buyers of BTC have been able to defend the key support of the criptomoneda at $7.700 until now, that seems to be the only region of support in the short term. This is what is preventing it see a disadvantage significantly higher. Bitcoin Jack, an analyst of cryptography very well respected on Twitter, spoke about this in a recent tweet. In his publication he explains that, after losing the support level on the $7.900, BTC is about key regions that you must avoid to lose. “Some reflections here on the price of BTC. We are to -27% from the top. We arrived to a group of levels of support for daily, weekly, and monthly. The reactions, whether they are bullish, they are often strong and quick,” said Bitcoin Jack. It is important to note that, despite the sale continues of the last few weeks, Bitcoin is still on track to see substantial benefits. At least, according to their model of “stock-to-flow” that has been popularized by the renowned crypto-analyst, Bitcoin, PlanB.

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