The digital cryptocurrencies revolving across the globe always face price volatility. However, it is not something that the financial market loves to cherish. Due to volatility, there exists a high degree of uncertainty, which lifts the trust of investors. When investors do not find it capable of placing trust in the financial market, they withdraw money, and it crashes down. It is the same thing that is highly probable to happen with the cryptocurrency market nowadays.
Recently, scientists in South Africa discovered a new strain of coronavirus. It can direct the global economy because it is immune to the vaccine already given to people. Therefore, it can pose a severe threat to the global ecosystem, and hence, investors are very much worried about it. Also, it has already affected the stock market prices, as it also started to decline drastically after the discovery.
Due to the increasing financial stress because of the coronavirus strain, it is expected to collapse in the financial market. On Friday, there was a decrease in bitcoin prices by 8%, which was very high in the past few weeks. It has led bitcoin to go lower than the $57,000 price resistance level and created a panic among the investors.
Small-time investors started to remove their investment from bitcoin and purchase some of the stable securities backed by the government. However, the same is the case with the stock market. Even though they were safer and less, people withdrew their money. It is expected that in India time, cryptocurrencies will face a bearish market phase, and therefore, investors are not looking forward to having their money into it. If you are curious to know more, you can check what’s the deal of cryptocurrency here.
The consecutive decline in the BTC market
According to the analysis, even though there is a sharp decline in the prices of bitcoins consecutively in the second week, we are still far from panicking. There is nothing to worry about bitcoin for investors because the uptrend line is still intact since July. Cryptocurrency bitcoin is still a good face for investors because it is experiencing a high price.
Now, bitcoin is standing at a price level of slightly lower than $55,000, and still, it is higher than the all-time lowest price of $29,000 this year. Therefore, the only thing investors need to do is place some trust in the bitcoin that it is going to recover soon. Also, according to the LTH indicator, soon, the bitcoin price will increase because of the withdrawal of investment. This statement has been given after going to the Past actions of the same.
The decreasing prices of BTC are expected to reach the price level of $53,000 soon. It is a bearish phase for bitcoin in the market, and therefore, it is going to reach the critical level of price. Bitcoin is on the verge of experiencing a high decline in prices after reaching its all-time high price of $69,000.
That was the price where every cryptocurrency trader could have sold bitcoin and purchased any other investment in return. However, someone might have missed the opportunity and now regret it. Also, it is seen that whenever there is a sharp decline in the prices of bitcoin after reaching its all-time high price, that phase returns and gives profits to investors.
On the contrary, according to the neutralization of the bull run, the BTC reinstatement price is the gazing point of SSB, which is the average height and average low point prices of 52 sessions. Also, it includes 26 future session projections.
Where can it lead the market?
According to the recent trends, the investors are very much panicking about the new strain of Coronavirus. They believe that it will crash down the cryptocurrency market, and therefore, they are likely to find their crypto assets. However, this is not precisely the right time to do so. However, people take action without taking into consideration some of the most important things. If you look at the previous records, the investors who are now holding bitcoins will get a huge profit in the future, and the ones who are withdrawing their money will regret it.
Also, recently, some huge industrialists and CEOs of companies made statements against cryptocurrencies. For example, Twitter CEO said that it is nonsense to invest money in bitcoin nowadays, and therefore, the bitcoin market experienced a downfall. Apart from this, China imposed a ban on cryptocurrency mining, which further led to the degradation of the prices. China has been the core of providing mining services to the whole world, and now, when the activities are shut down, it will impact the global cryptosystem.
