Cryptocurrency

Bitcoin registers a drop of almost 9% in the last 7 days

From 25 march until 1 April, there was a fall in the price of bitcoin to around 9%. Several events that come to impact on the behavior of the market.In the first place is the announcement of the us Federal Reserve about the new monetary measures that will be used to keep the country’s economy afloat. According to analysts Daniel Rybnik, Argentina, and Daniel Arráez, of Venezuela, these measures have the potential to increase the adoption of bitcoin in the medium term.You must also consider that, according to a study conducted by the team of GlassNode, during the month of march the amount of bitcoins deposited in exchange offices decreased by 7%. The researchers explain that, despite the fluctuations of the market, investors could be looking to consolidate their positions in the long term.Also, in the course of this week the network of Bitcoin recorded a set scheduled of the difficulty of mining, which represented a decrease of 15,95%. This possibly made it attractive to do mining in the network. In fact, it introduced a migration of miners from the network of Bitcoin Cash Bitcoin.

A market difficult to predict

When reviewing the journey that was the price of the bitcoin from the 25th of march to date, it is worth mentioning that on that day the market capitalization of the criptomoneda reached USD 121.000 million dollars, according to data from GlassNode. Also, when analyzing the graph of the price in periods of 1 hour, it is observed that, on that day, bitcoin came to fluctuate between the ranges of the USD 6,900 and USD 6,400 for.Graph of BTC/USDT (Binance) in periods of 1 hour. Source TradingViewEntre the 25 and 27 march, the value of BTC is held in a holder near the USD 6,500. The resistance was located in the area of us $ 6.800, as has been happening since the 20 of march. However, on the 27th of march from 5 pm, hour of Venezuela, the price took a dip of around 8% in less than 5 hours.At this point, it is better to make a count on the volatility of the criptomoneda, which has been elevated since the beginning of march, in contrast with the months of January and February. According to the data offered by the team of Skew, the volatility of the criptomoneda remains high. It is for this reason that the correction of the price view on the 27th of march should not turn on the alarms.The volatility of the criptomoneda has increased significantly in the month of march. Source: Skew

Correction of the price

The fall in the price continued up to 5 pm of the 29th of march. So, between the 27 and the 29 of march bitcoin fell 12%, leaving the price in the range of us $ 5.850. If you back up a bit, it will be appreciated that since the 20 of march the market has tested several times and the support located in the USD 5.800. It could be considered that a fall of 12% entering the parameters of a natural correction in the price of the criptomoneda.Starting at 6 pm of march 29, gave a bounce from the threshold of USD 5.800 up to USD 6,500. For the 30 of march, this made bitcoin recover 10% of your price. On the other hand, the capitalisation was a slight drop on the 29th of march, which led to the range of USD 112,000 in millions of dollars. This represented a fall of 7% compared to the market capitalization from the 25th of march.It should be noted that the behavior of the price as of march 31, up to the time of making this note shows a relative stability. The criptomoneda is maintained in the range of USD 6,000, while the resistance more noticeable these days is in the range of USD 6,500.

What to expect from the market of bitcoin?

The financial scenarios mentioned at the beginning of this article demonstrate two important things: bitcoin seems to have a higher chance of adoption in the framework of the economic decisions taken by the united States. In the second place, are the expectations of investors and market analysts, for whom the criptomoneda could register, in the medium term, an uptrend that could test the strength of the USD 7,000.Since the fall of the majority of the markets globally, the last 12 of march, the price of bitcoin has recovered slowly. Despite the fact that there is a huge volatility in the price of the criptomoneda, and the possible market manipulation by the whales, the behavior remains relatively stable.With the global situation caused by the quarantine of the coronavirus, and the economic context that has generated it, it becomes very difficult to make predictions. Let us remember that in approximately 40 days will occur the halving of Bitcoin. There are great expectations around this event, because of the behavior that has taken bitcoin on the two halvings above.

About the author

Caroline W.

Caroline W.

Caroline is passionate about learning languages, cultures and the Internet. She has years of experience working at international online advertising projects. Growing interested in Bitcoin and cryptocurrencies in late 2018, she joined CurrencyMarket24 as a writer.

Do NOT follow this link or you will be banned from the site!