Since the eruption of the Coronavirus, it has not been a smooth sail for equity markets. For the past 12 years, this has been the worst for equity markets with the highest sell-offs. The crypto market has also not been left behind. Many people have sold off their assets amidst fear of possible economic instability. Gold and silver, which are considered safe investments, have also experienced a high selloff on Friday.
With the high resistance of Bitcoin at the price of $10,400, there was so much that was anticipated for $9400. That, however, did not meet expectations as it lacked support due to the high selloff in the crypto market.
The high selloff pushed the next support level to $8200 – $8400, and there is so much expectation here. There is a high possibility that this will only work in the short term as the price of Bitcoin is still expected to drop according to analysts.
Contrary to popular belief, this is still not bearish as the price of Bitcoin is still up by 27% since the beginning of the year. That means that despite the sudden drop in the price of Bitcoin, it is still one of the best-performing assets.
The $8200-8400 level is considered a relief level. If there can be support here, there are chances that the bullish trend will continue.
For an upward momentum, the price would have to break the resistance levels and go past $10, 400 and that is less likely to happen.
If Bitcoin price does not find support at $8400, it will mean that it will be pushed to the next lower level which is $7500-$7700.
With the current trend in the price of bitcoin, the whole crypto market is affected and a downward trend is generally expected.
As for altcoins, the same trend of market capitalization is experienced. There was rejection at the $115 billion levels and the next lower level will be sought at for support. The next support level is likely to be $73-$75 billion.
Bullish Bitcoin scene
If bitcoin’s situation was to be turned bullish, then the relief level will have to be pushed from $8400 up to $9400. That means that Bitcoin will have to find support first at $8400 before the support level can be pushed up. Once it reached the $9400 level and passes it, then it will break the resistance level of $10,400 in a short time.
Bearish Bitcoin scene
There is no clear evidence that the market is bearish. If the price rises without any particular reason but does not pass the $8950 or $9170, then that will mean that it’s a bear situation, and with that, a downward trend in the price of bitcoin is expected. That will make bitcoin to go for much lower support levels.