Bitcoin price has dropped by 16% since March 8 in the strongest sell-off of recent months. After a devastating decline, the psychology of leading traders on the short-term price trend in many different directions.
Downtrend Bitcoin is just getting started
Bitcoin dropping $ 1,500 overnight led to a liquidation of around $ 185 million.
Long orders with high leverage were forced to adjust their positions or sell when prices started to decline rapidly, causing strong selling pressure on the market.
Although the current situation does not represent a positive or negative correlation between Bitcoin and the vast financial market, Bitcoin traders are cautious about both cryptocurrencies and other risky assets such as individual stocks.
According to global market analyst Alex Krüger, amid rising volatility and unprecedented levels of fear, Bitcoin prices could drop 20% in a short time frame.
Compared to safe-haven assets like gold, Bitcoin's market capitalization remains at just $ 144 billion. If the psychology changes in a sudden direction, it can immediately impact the market trend.
“BTC in this environment can be reduced by 20% in an hour. Coin may collapse completely, when large whales panic or decide to liquidate positions to margin or hunt profit through other types of assets. There is no analysis Which in The past discovered this".
Since early February, analysts like Adaptive Fund's Nik Yaremchuk said the Bitcoin price would likely test the $ 7,500 area, as it has been acting as a liquidity pool for a long time.
Normally, when a critical support level like the range of $ 7,500 to $ 7,700 is given, it will create a strong reaction from buyers.
Although the price of Bitcoin has risen to around $ 8,000, it has fallen back to a low of $ 7,900 since.
Bitcoin price plummeted overnight | Nsource: Tradingview.com
One prominent trader said that after breaching the $ 8,200 support level, the low support areas remain at $ 7,300 and $ 7,500.
And not even $ 8,200 is providing support.
Now looks like uploaded overdue for a bounce, but not expecting it to break $ 8,500.
As discussed yesterday, main areas around $ 7,350-7,500 after $ 8,200. pic.twitter.com/4rwFygWvZZ
– Crypto Michaël (@CryptoMichNL) March 9, 2020
"Teven 8,200 dollars is not must be a support level. Now it seems it is overdue for once increase, but no hope price will break 8,500 dollars. As had exchange in Yesterday, the main area was about 7,350-7,500 dollars after break 8,200 dollars ".
Besides, trader Romano said that while the range of $ 7,700 to $ 8,200 is still a favorable area for long-term buying, the $ 7,670 gained earlier this morning whether or not the bottom is unknown.
Not entirely convinced this was the bottom.
The dream is to long between 7.7k-8.2k and if possible hold till new all highs.
Sad for the people who longed their longs and didn't close close hoping for new all time highs without a pullback….
Had the same last bull run summer
– (Romano) (@ RNR_0) February 27, 2020
“Do not completely believe this is the bottom. Plan to place a long order from 7.7k-8,2k and if possible keep until reach All new highs. Sad for those who loosened their dragon commands and not closed with the hope of The new ATH has no pullback. There was a similar bullrun last summer. ".
Expected significant fluctuations
As Joe007, the largest Bitcoin whale on Bitfinex said, Bitcoin price has never experienced the risk of actual recession or global financial market collapse.
In such a period, the trend of BTC price may be more affected by the psychology surrounding the global market, instead of the basic techniques and indices of the cryptocurrency market.
“Bitcoin must fill the void and increase up"
YouTuber and Bitcoin educator IvanOnTech have expressed their views on the current collapse situation.
Ivan believes that Bitcoin is plunging to fill the CME gap at $ 7,700. After reaching this milestone, Bitcoin will rebound.
BITCOIN HIGH SPEED ELEVATOR
Soon at $ 7700, heading down !!
$ 7700 is a key level
Bitcoin has to fill the gap and bounce
– Ivan on Tech (@IvanOnTech) March 9, 2020
“Elevator Bhigh speed itcoin
Will soon reach the $ 7,700 mark!!
7,700 dollars is an important level
Bitcoin must fill the void and increase up"
“BTC will bounce back to 10K dollars quickly “
Code to Inspire co-founder John Lilic believes that the king coin will return to $ 10,000 pretty quickly, which is expected to happen on Monday night (Vietnam time).
In his opinion, this dump is only manipulating the market.
the bounce back to $ 10k #bitcoin is going to be real fast perhaps my midday Monday EST. This recent dump is not anything other than the usual mkt manipulation, w / crypto pundits trying to rationalize the macro news. If shit is really hitting the fan, I want crypto even more.
– John Lilic (@JohnLilic) March 9, 2020
"Bitcoin will be very fast pRevive back 10K dollars, probably on dark things 2 (Vietnam time). Dump recently Just manipulating the market usually, common, normal. CCryptocurrency experts are trying to streamline macro news. If prices continue to fall, I want lots of coins more".
The digital asset manager at VanEck, Gabor Gurbacs, points out the reason for the current price drop:
The reason Bitcoin is crashing can be explained by the fact that, at the moment, there are more sellers than buyers.
– Gabor Gurbacs (@gaborgurbacs) March 8, 2020
“Bitcoin reason plunge can be explained by the fact that there are more sellers than buyers being at the moment".
You can see the price of BTC here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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