What a week. In four days ‘ time, the bitcoin price by more than 15 percent. And in the fall, you can not really be divorced from the global developments. In the case of the corona virus brings a lot of uncertainty. What does this affect bitcoin?
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The american stock exchange to no avail
Below, you can see that the price of the Dow Jones Industrial Average, an index of the 30 largest U.s. publicly traded companies. A couple of weeks ago, it reached, this index was the highest value ever.
But, as of last Friday, started the race in a free-fall. Since Friday, the stock price of the Dow Jones index from its all-time high, with more than 3.632 points, or 12.4 percent of the time.
The last time the Dow Jones index is so hard to get to the bottom, after an all-time high in October 1929, just in time for the start of the most severe economic depression of the mid-twentieth century.
It is not clear that corona virus is the cause of the fall; however, it is often used by the media to be used. The impact on the economy, it is also to be seen, as increases, Coolblue their prices, because the company expected that the products of different suppliers are running out, and there is, therefore, a scarcity is created.
The stock price of Netflix has been since the start of this week, just a little bit of a rise. Investors seem to be speculating that the people should stay at home, and the streaming service is ready for use.
Do not support
Also, the bitcoin price reacts violently. Since Tuesday, the price of nearly ten percent. Thus, it seems that bitcoin is entering in to the coronapaniek. Just as it seemed 8.700 usd (7.900 euros, in a green area, a support system, but it was short-lived. Now, all eyes are focused on the 8.270-dollar (eur 7,500).
For some investors, this will call up the questions, is bitcoin now a speculatiemiddel, or a safe haven? That is, it is hard to say. At the beginning of January seemed to be the bitcoin price is still moving with gold, and after the political turmoil between the united states and Iran. And now, with the outbreak of the corona virus follows the bitcoin back to the market.
The truth is in the middle, perhaps, is the bitcoin, however, is a non-correlated asset. Or, in plain English, bitcoin is doing what he wants. And that, too, can be a powerful feature.
Make or break for bitcoin
Plenty of fundamental news, then what we are seeing on the charts? It now seems to be make or break for bitcoin. The green line on the chart shows that the 200-day Moving Average (MA). That is, the moving average of the last 200 days.
This line is used by analysts, frequently being used to determine whether or not there is a bull market. It is a good sign, but it may be a some fix to do.
The soil is found?
May we have the bottom yet. We can see in the graph, namely, a positive divergence. This means that the price of a lower base, but is an indicator of a higher bottom, let be seen. The indicator is the Relative Strength Indicator.
Earlier, a similar divergence or an increase of almost 16 per cent. So, how will this turn out?
In the long-term support
However, there is some good news. The 21-week Moving Average has in the past served its purpose as a strong support in a bull run. In 2016 and 2017 and was in the course any time up to the touch line, that is, we will show the green arrows.
If bitcoin is here to support that as a good sign, it can be used as a basis for new growth.
Bitcoin is dropping to be more substantial
In the fall of last week was a bit shocked. However, if you put it in perspective with the place, it’s actually not too bad. On the way up as the direction are sometimes a good jump in at the deep end. In 2017, the course more than once with more than 40% in a very short period of time, and then to rise again.
So, it may well be that this is a correction. No time to panic, but to wait and see how the situation is going to play out.
We expect the bitcoin price to
It remains the coronacrisis hold? And it is in bitcoin market speculation, or a safe haven? The global uncertainty makes it difficult to make a reasonable forecast of the bitcoin price making. But, you know, we sketch two scenarios. We have always been a bit of good!
Bullish
Because of the positive pay close attention to the course of the next few days for some to recover. The first point of resistance, which comes into view is a 9.155, the $ 8.300 million). The next resistance is at 9.525, the $ 8.630 million).
Bearish
Is falling bitcoin, the price is likely to support 8.270 us dollar (eur 7,500).