- Bitcoin just dropped off a cliff after it dropped over $2000 in just one day.
- The cryptocurrency dropped around 25% over the past 24 hours as it currently trades at $5,918.
So, Bitcoin just fell off a cliff in an unprecedented 25% price fall. The cryptocurrency dropped from around $8,000 today to reach the current trading price of around $5,918 in a move that has shocked the entire ecosystem.
This price fall is largely driven by Coronavirus fears after President Trump announced that he would be closing borders for any European tourists for at least 30 days. This sent shockwaves of fear throughout the entire economy as both the S&P 500 and Dow Jones Industrial Average plummetted to fresh lows not seen in over a year.
This latest Bitcoin price drop has now wiped out any of the positive gains seen in 2020
Bitcoin Price Analysis
BTC/USD – Daily CHART – SHORT TERM
Market Overview
The market is currently extremely volatile right now and we can expect the price to continue to whipsaw over the next few hours. However, when we look at the daily chart above, we can clearly see Bitcoin dropping off the cliff as it plummetted from $8,000 to reach as low as $5,900. It has since recovered slightly above $6,200 (as of writing the article) but we can expect the depressive price action to continue over the following few days.
.button_call{display:inline-block;text-align:center;vertical-align:middle;padding:12px 24px;border:1px solid #2e7ea1;border-radius:8px;background:yellow;background:-webkit-gradient(linear,left top,left bottom,from(#4bcfff),to(#2e7ea1));background:-moz-linear-gradient(top,#4bcfff,#2e7ea1);background:linear-gradient(to bottom,yellow,yellow);text-shadow:#215a73 1px 1px 1px;font:normal normal bold 20px arial;color:#fff;text-decoration:none}.button_call:hover,.button_call:focus{border:1px solid #41b4e6;background:yellow;background:-webkit-gradient(linear,left top,left bottom,from(#5af8ff),to(#3797c1));background:-moz-linear-gradient(top,#5af8ff,#3797c1);background:linear-gradient(to bottom,yellow,yellow);color:#fff;text-decoration:none}.button_call:active{background:#2e7ea1;background:-webkit-gradient(linear,left top,left bottom,from(#2e7ea1),to(#2e7ea1));background:-moz-linear-gradient(top,#2e7ea1,#2e7ea1);background:linear-gradient(to bottom,#2e7ea1,#2e7ea1)}
Short term prediction: BEARISH
Bitcoin is extremely bearish, there is not much more to be said about it.
If the sellers continue to drive beneath $5,900, the first level of support is located at $5,500. Beneath this, additional support is located at $5,381 (downside 1.272 Fib Extension), $5,072 (downside 1.414 Fib Extension), and $5,000.
Beneath $5,000 support can be located at $4,800 and $4,672 (downside 1.618 Fib Extension).
Key Levels
Support: $6,200, $6,000, $5,900, $5,858, $5,500, $5,381, $5,072, $5,000, $4,800, $4,672.
Resistance: $6,500, $7,000, $7,200, $7,500, $7,600, $8,000, $8,250, $8,461, $8,672, $8,979, $9,000, $9,100.
Source: Coin Gape