Bull Trend Over: Bitcoin in a Free Fall as Price Crashes to $5,720
- Technically, below $7,700 the BTC 2020 bull trend is over
- Bitcoin dropped 43% from its most recent peak in February, drops 20% in the past 24 hours
In yet another massive sell-off in the crypto market, Bitcoin has lost nearly 20% of its value. This crash led Bitcoin to drop to $5,850 level on Bitstamp today. At the time of writing, BTC/USD has been trading at $5,900 while managing the daily trading volume of $1.67 billion on top ten exchanges with real volume.
Just a month back, bitcoin was trading on 2020 high of just above $10,500. But ever since then, Bitcoin has been going lower amid a wider global risk asset sell-off over the intensifying coronavirus crisis.
Today’s deep losses have the yearly gains of the bitcoin turning negative by almost 19%. Overall, the crypto market lost $53 billion today adding to the losses since Feb 13, having lost over $135 billion to date.
“Investors are moving out of any risky assets,” said Vijay Ayyar, head of business development at Singapore-based crypto exchange Luno.
“Even though Bitcoin is compared to gold as a safe haven asset, it’s very under-penetrated and is considered more as a risky asset to hold at this point.”
Economist and trader Alex Kruger emphasizes that Bitcoin is trading like a risk on asset. “Technically, below 7700 the BTC 2020 bull trend is over,” said Kruger. The bullish territory for the leading cryptocurrency is above $8,500.
“I think this time and for the first time the macro is more important than BTC's technicals,” said the trader adding, the macro outlook is “bleak.”
Time to pay attention. Bitcoin is trading like a risk-on asset. Not a safe haven, but the exact opposite. Following stocks down – although ironically stocks are the ones trading like low quality shitcoins. pic.twitter.com/IPqloMzQs9
— Alex Krüger (@krugermacro) March 12, 2020
The next levels of support for bitcoin are $6,800 and $6,400. According to another trader Josh Rager, failure to hold $7,200 not only means a retest of the previous bottom at $6,400 but also the test of the 200 WMA which is currently at $5,500.
The global stock rout continued Thursday while bond yield tumbled after US President Donald Trump suspended travel from most of Europe. But he didn’t announce any detailed US rescue package.
During this time, bitcoin hasn’t proved to be a safe haven for investors, having dropped more than 45.5% from its most recent peak in February as global markets were roiled by the stock plunge in crude prices and the coronavirus outbreak.