Despite 2020 starting out on a high note regarding Bitcoin’s price, Bitcoin’s market prices are falling yet again. The past week saw the Bitcoin price tumble between support and resistance and has since displayed a downward path indicating a bearish trend. At the start of February, Bitcoin was trading at $10, 500 with the bullish run set to reach $11, 000 and $11, 500 resistance level in the coming days.

However, Bitcoin has tumbled by close to 9% trading at $10, 300 in February to trade at $8, 300 at the time of writing. Bitcoin’s bearish trend caught many traders by surprise as they had projected Bitcoin’s price to rally above $9,000 for the better parts of the year.

Bitcoin Price Fall

While no apparent catalysts are fueling Bitcoin’s sharp price drop-in in recent days, the sharp drop in price has largely been linked to the rapid spread of the deadly coronavirus (COVID-19), which was first reported in December 2019 in Wuhan, China. The spread of the virus has taken a toll on the global economy as investors start preparing for the worst-case scenario where the continued spread of the virus could bring the economy to its knees.

Already, the global markets have already been affected by the spread of coronavirus, where $3.6 trillion in crypto value and $48 billion have been wiped out from the stock and crypto markets, respectively.

Bitcoin Price Analysis in the Past Week.

Last week, Bitcoin’s price climbed to a fresh daily high of $9, 215, but quickly made a sharp U-turn falling to $8, 960 and losing 2.15% on a regular basis.



Regarding the technical analysis, the RSI indicator on the daily chart turned south below the 50 handles to suggest that the bearish momentum is building up. The next critical support for the pair aligns at $8,700, and $8, 400. The resistance lies at $9,100, and $9,200.

With Falling Prices, What’s Next for the Market

Bitcoin’s falling prices, traders can only hope for a turn of event in the coming months. Currently, Bitcoin has only tanked by 11%, and it’s expected to fall as much as 20% and start trading at 7k.

Nonetheless, Bitcoin investors shouldn’t get worried regarding the bearish trend given that Bitcoin is still strong. Bitcoin is stronger than never thanks to global economic instability, plummeting interest rates, and erosion in the local currencies.

Bitcoin’s bearish trend is much likely to be short-lived due to the below factors:

Bitcoin golden crosses- The golden cross is a bullish breakout pattern formed from a crossover involving a security’s short-term moving average breaking above its long-term moving average or resistance level. Bitcoin golden crosses involve an enormous sum of money and indicate that BTC will rise in price in the coming years.

Bitcoin halving- Bitcoin halving is barely two months out-likely o occur in the first or second week of May. The halving event is likely to propel Bitcoin to a bullish run with a fair price of $55, 000 to $100, 000

Bottomline

Bitcoin had undergone a full recovery in price, but recent events, especially the spread of coronavirus has seen the price tumble to 8k. Nonetheless, traders shouldn’t get worried about the bearish trend as a bullish run is on the way thanks to the halving event that is less than two months away.

