Currently it has been several weeks since Bitcoin has reached its highest levels so far. Despite the large amount of positive news, the decline has even intensified since the beginning of this week. Why is this so?
Not only in the BTC market, but also in the stock and index since the outbreak of coronavirus we can observe a large decline. The economies of some states are also beginning to weaken. Especially the Asian ones where this virus broke out. Now Italy have a real problem, which has quarantined several tens of thousands of people.
Since people are afraid to go to work or even have orders to stay home, there is no one to produce. In particular, China’s economy is weakening. Since the economy is intertwined if the current crisis worsens, the coronavirus will certainly have an impact on the price development of Bitcoin. People in fear will withdraw their investments not only from stocks but also Bitcoin. This has probably already been done by several traders.
The long growth we have seen in recent months at Bitcoin, has not seen quite long. Although he did not make a big appreciation, but on the other hand, since the beginning of the year we have not seen any major correction. And it just belongs to a healthy price development in the market. This is one of the reasons why the current correction may not only be quite extreme, but also long.
It was precisely at the price where Bitcoin recorded the highest prices this year that strong resistance had already developed in the past, which simply did not let Bitcoin continue to grow several times. Thus, the USD 10,300 zone may not only be a short-term time frame problem, but Bitcoin may remain below this level for several months.
Of course, the current market situation in recent weeks is not positive. But we have to say that in the history of BTC we had much worse price declines. The current correction is not terrible. Simply on the market it is necessary to count on the correction. In the long term, we can still prepare ahead. Or after the halving season, when we can really expect Bitcoin to grow.