Bitcoin’s price movement over the last few weeks has sent shockwaves across the cryptocurrency industry with several altcoins the following suit. The price crash was seen with such nightmarish eyes as it represented the very same conduct of the mainstream market.
Bitcoin was seen as an asset that would not collapse due to societal shifts, but it seems like the Coronavirus has changed that. At a time when the S&P 500 and the NASDAQ were crashing left and right, only gold stood firm in terms of price.
At the time of writing, Bitcoin was trading for $7884.11 with a total market cap of $144.001 billion. The 24-hour market volume was at $41.346 billion because of the 10.43 percent drop in price over the past week. It is still not known if Bitcoin will continue to follow the pattern taken by stocks and bonds, but holders are positive that the upcoming Bitcoin halving would change its fate.
While Bitcoin’s price fell, trading volume records in Bitcoin’s options market were broken this week as investors rushed to hedge their positions. The total options trading volume on exchanges such as Deribit, LedgerX, Bakkt, OKEx, CME was clocked at $198 million, $26.7 million more than the previous record.
The hourly chart showed a significant dip in the short term after the recent bear crash. The immediate support was at $7713.1 while the price hovered just above it. At the moment, Bitcoin’s sideways movement was apparent, leading to more bear attack fears.
The Relative Strength Index was falling towards the oversold zone after the price broke through multiple immediate supports. This meant that more people were selling their Bitcoin rather than buying it up.
The Chaikin Money Flow indicator was below the zero line, a sign of the decreased capital inflow into the Bitcoin market. This was the first time in a month that the marker has fallen below the designated setting.
The Parabolic SAR was above the price candles after an extended run in the bullish sector. The indicator showed that the world’s largest cryptocurrency had more bearish terrains left to trudge.
Bitcoin had a tough time on the daily charts after multiple immediate supports were broken. The last immediate support to break was at $8530 while the latest one was formed at $7869.
The Chaikin Money Flow indicator had crashed below the zero line for the first time this year. It might be too early to say that investors are losing confidence in the cryptocurrency because the Coronavirus impact has been felt everywhere else too.
The Parabolic SAR stayed above the price candles as the bearish fate was shared by both the daily and hourly charts.
The Relative Strength Index indicator touched the oversold region for the first time since December 2019. The increasing sell-off in the industry was seen as the main reason for this.
For the time being, it looks like Bitcoin will have to bear with the negative forces in society. The rising panic due to Coronavirus and economic collapses need to be mitigated before the cryptocurrency market can recover.