After facing a massive drop and surge in prices, Bitcoin is still set to face the same critical resistance it had faced in the wild weekend. Dropping below $6,000 and as low as $5,850 and finally making a surge of above $6,000 on Monday, the leading cryptocurrency is still trying to recover after going an all time low.
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Bitcoin witnessed it’s highest ever fall when it dropped to an historic low amount within a few hours and it has not been able to recover ever since then. Currently, the prediction of the price of Bitcoin on a short term basis is quite bearish.
- Bitcoin predicted to fall below $5,000 in coming weeks
The volatility of Bitcoin currently is alarming and despite trading just above $6,200, it’s price is predicted to fall massively in the coming weeks. The price of the cryptocurrency has never recorded this level of volatility in six years and it looks like it is set to continue in the coming weeks.
- Global pandemic causing financial market crash
With the widespread of the novel Coronavirus popularly known COVID-19 wrecking havoc across the globe, about half of the world population is currently on lockdown. With the world economy currently at a stand still, about 600,000 people are reported to have tested positive to the virus. According to the WHO, about 28,000 people have died from the virus with the major deaths coming from Italy. The global financial markets have been crippled by the widespread of the virus and even though the world government have tried to pull their countries out of this financial disaster, respective economies have failed to respond.
- Bitcoin hits historic year low amount
Bitcoin witnessed its lowest ever drop when it registered a $5,000 mark after swinging between low and high since the beginning of the year. Around the last 15 days, Bitcoin has managed to record $5,800, it’s highest since March 12 while investors have been buoyed by the price movement to around $6,200. If the price of the coin goes lower than what’s expected, then a continual low drop is expected anytime soon. With reports stating that an amount of Bitcoin was stolen, this would further deepen the crisis.
- Bitcoin mirroring traditional financial market
With the world on lockdown, Bitcoin is responding the same way as normal financial markets are responding to the global pandemic that’s ravaging the world. This in turn means that since the traditional financial markets is crashing down, Bitcoin would follow suit. If this happens then it is inevitable that Bitcoin goes lower than $5,000 mark that experts are predicting.