Markets are emotional places, stressed about a global pandemic well the prices are bound to freak out as well. As if the coronavirus was not enough to send the markets into a tailspin, the price of Crude Oil has also managed to slide down by 30%, with many predicting further drops are coming our way. Many are wondering whether crypto tokens are the one place to store your hard-earned funds and potentially beat the whims of the market. Unfortunately, this does not appear to be so. If you are wondering how to interpret the movements of the crypto market, then gain an introduction through our Bitcoin price analysis.
The Current Indicators
At the time of writing Bitcoin stood at $7 801 USD at the close of business, however, the maximum price captured during the day was $8 351 USD. The lowest level that Bitcoin dropped to today was $7 697 USD. Over the past few days, Bitcoin has managed to ground itself around $7 600 USD, which seems pegged to be the long-term support level. Yet, if one considers raging market conditions, it seems unlikely that stability will reign supreme and it is highly likely that extreme price volatility could be expected.
Looking Into The Future
Presently, Bitcoin’s price analysis has shown that the current total market cap for cryptocurrency is $227 billion USD while Bitcoin’s respective share is $145 billion USD. Analysts have shown that the initial resistance can be encountered at approximately the $8 000 USD mark. If one considers the RSI indicator things are looking slightly bleaker, as it flailed about the 50 zones yesterday. Therefore, signs that Bitcoin is about to engage in a bear market are becoming more prevalent.
What Factors Cause The Price Of Bitcoin To Fluctuate?
In terms of general economic principles, Bitcoin price analysis shows that Bitcoin is subject to the same laws of supply and demand as all other commodities. Yet, globalization has far-reaching effects, and these are always more pronounced in times of great distress. The effect of world issues such as coronavirus on the markets cannot be ignored.
Although there is a more inconspicuous factor within the Bitcoin community, certain stakeholders hold a disproportionate amount of tokens. Should one of these Bitcoin Whales choose between buying or selling BTC tokens, they can have an enormous effect on the price.
To summarize Bitcoin, like many other industries and commodities, has been suffering under the effects of the coronavirus and the tumultuous oil price. In contrast, Bitcoin continues to dominate the cryptocurrency market and holds the majority of the total market share. At present Bitcoin is flailing around the $7 600 USD mark. Finally, the actions of key players such as Bitcoin Whales can fundamentally change the trajectory of the Bitcoin price analysis in 2020 and beyond. What do you think will happen to Bitcoin in the coming year?