The Bitcoin price news today show that the situation is not getting any better for Bitcoin investors after the bad crash from last week. Over the past 60 odd minutes and after holding at $5,300 for hours on end, the price of BTC has slid under $5,000 yet again and breached the key price point for the first time since Friday’s capitulation event. As Bitcoin falls under $5,000, the weakness comes as the global equity markets continue to see downsides heading into Monday.
According to data from Investing.com, all major American indices have reached their “limit down” point at -5% which means they can’t fall any further before the actual open on Monday. The underperformance over the past couple of hours for BTC seemingly confirms that there remains a strong correlation between the price trajectory of Bitcoin and the one of equities. Namely, this is the primary index that tracks many of the indices such as the S&P 500.
Now that Bitcoin falls under $5,000 again, the cryptonews may show further losses on the market. Bears are certainly in control and a lot of investors are wondering what comes next for the flagship cryptocurrency.
Unfortunately, the short term outlook looks bearish now. According to one prominent crypto trader named Byzantine General, Bitcoin’s strong rejection at $6,000 earlier today and with the futures funding normalizing back to 0%, there is a good chance that BTC retraces to the bottom of the short term range and around the $4,700 level.
I'm gonna go back to less talking, more charts.
— Byzantine General (@ByzGeneral) March 16, 2020
He also explained that with the current macroeconomic backdrop of pain in traditional markets, which is occurring because of the rapid spread of the coronavirus-caused illness COVID-19, BTC is unlikely to recover any time soon.
All of this comes at a bad time for Bitcoin. At the end of 2018, the dominant cryptocurrency also preceded a 20% drop lower at the end of the year, before an eventual recovery which saw the BTC rally going to $10,500 in only a few months time. Currently, a situation like that is off the books and all of the fundamentals, technicals, and even on-chain data suggest that Bitcoin is not showing any signs that it will recover in the short term.
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