These are complicated times for the international financial market, and this includes the cryptocurrency market. Well, in this age of panic and actions motivated by fear. Volatility in all markets, including the so-called value reserve assets, is increasing. Leading to a new collapse in the price of Bitcoin.
The price of Bitcoin in 2020
Since the beginning of the year 2020, the price of Bitcoin has made headlines worldwide. Either positively, due to its great increases. Or negative, with its no less spectacular falls. Like the one facing today, and it has lost almost 10% of its value to the cryptocurrency.
This fall seemed difficult to predict considering how the crypto market has developed so far this year. Starting the same with one of the most important bullish rallies of recent times. Which remained virtually uninterrupted from the first week of the year, until the end of February. Locating the price of Bitcoin around $ 10,000.
However, the optimism caused by this upward trend in cryptocurrency was soon overshadowed by the significant drop in its price on February 24. When, the Bitcoin market collapsed at the same time as the international financial market. Dragged by the panic caused by the arrival of the coronavirus in southern Italy and therefore in the western world.
The collapse of Bitcoin prices was all the more strange because cryptocurrency is usually considered an active reserve of value. So, in times of uncertainty in global markets, it should increase or at least maintain its value, just as gold and silver did at first.
This situation triggered a debate within the crypto community about the quality of BTC as a reserve of value. Which, however, has been overshadowed by the fall in the price of gold a few days ago. That has shown that in the current state of the global economy, not even the reserve assets of value are safe from the pitfalls.
The fall of today
Therefore, in a climate of such uncertainty in the markets, even in those considered safer during times of economic restlessness. It does not seem strange that a market like Bitcoin, which is recognized for its spectacular and sudden rises and falls, is suffering almost inexplicable variations.
In the case of today, which has led Bitcoin to lose 6.64% of its value in just 24 hours. Positioning at $ 8314 per BTC at the time of writing this article. We can see that the explanation to it is not so much found in events outside the market. But the inability of market bulls to face bears.
That is, those traders who bet on the fall in the price of Bitcoin to generate profits, have managed to outperform those who wait for a growth in the price of BTC. Preventing the cryptocurrency from breaking the resistance of $ 9,300, a great challenge faced yesterday. Throwing its price, and raising fears of an even deeper fall to $ 4,000 per Bitcoin.
This fall seems to erase the hopes of recovery in the cryptocurrency, awakened by the increase in the price at the beginning of the month. Putting the crypto community in the situation of fighting an even worse collapse in the cryptocurrency. What makes this our Today’s Data here at CriptoTendencia.