The rumor has it that instead of giving a push, Coronavirus holding Bitcoin back from further growth. Amid the Coronavirus spread, Bitcoin has been losing its ground for the fourth day in a row, dropping as low as 18 percent on 17th March.
The king of crypto dropped over seven percent to $5,026 after going down $4,442. The price of Bitcoin has plummeted as low as 55 percent from $10,500, this year’s highest set on Feb 13. Other cryptocurrencies also tumbled; Ether dropped about 12 percent and Litecoin over eight percent.
Due to the coronavirus outbreak, the latest sell-off of crypto has extended to yet another week as the stock gauges worldwide plunged into the bearish market, thus creating the Coronavirus holding Bitcoin back impression. The pandemic has reached over 113 countries and thousands of people are affected by it. Right now, as the intensity of the virus has loosened its grip on China; Europe is now the epicenter of this deadly virus.
The chief market analyst at AvaTrade Naeem Aslam believes that the price of Bitcoin is likely to further drop, and this is the reason that the recent sell-off did not attract investors.
Per the Technical gauges, Bitcoin seems primed to retest the latest drop of $4000. In case that level breaks, a retest of 2018 and 2019’s lows could be witnessed.
Global Strength Indicator, another technical indicator is at present in the oversold territory already, after falling below the 30 threshold that indicates that condition. Nonetheless, it still is above 2018’ and 2019’s lows, signifying there might be more pain to come.
While, on the hind sight, Coronavirus holding Bitcoin back claim may appear to be true in the current scenario. But it is also true that the fear has raised awareness towards paperless currencies.
