Bitcoin Price Rises 14% to $5300, Market Waiting for Next Halving despite Coronavirus

Updated on Mar 17, 2020 at 4:06 pm UTC by Jeff Fawkes · 4 min read
Photo: Shutterstock
Photo: Shutterstock

Market analysts claim that Bitcoin price could return to $14,000 levels because halving is as unstoppable as coronavirus and causes an increase in Bitcoin’s scarcity.

At the time of writing, Bitcoin price was reaching $5,300 levels, which means that the possible bull trend is near the next corner while teh next halving is getting closer. The sole fact that Bitcoin had survived Monday’s Wall Street opening and the red stock market, means it’s not all bad for crypto. Indeed, during the panic, many longtime holders initiated a massive sell-off. As a result, Bitcoin fell from $8,600 to $4,900 in one trading day.

Traders losing 50% of their capital were not happy. Multiplied pessimism rises as the coronavirus is striking the minds of all nations. Long trades seem like a dangerous opportunity right now. But people who bet on short orders must be happy with Bitcoin’s volatility. During the last 24 hours, the first cryptocurrency gained +14% in price. Buy the bottom, sell the moon – simple formula working even during the bad times.

Bitcoin Price Had a Dive Under $4,000, Traders Shocked

After a recent huge bearish correction, the Bitcoin market seems like recovered. It is good that Bitcoin can still hold strong support levels in times when all people want to sell stocks and buy food. The price is rising thanks to the Asian trading session today. People from the Wise East buying the dip, collecting the BTC they sold at a much higher price a while ago.

Despite the market looks like it is set for a bull run, John Isige of CoinGape warns the public about the 2018 support level. Which is $3,150, and if the price ever drops to that point, it can be the worst day for Bitcoin ever. Last week, Bitcoin already tested $3,820, and it’s a sign that bears are still on the market and will remain. Coronavirus panic causing even the longtime supporters to unwillingly sell coins. When it comes to a choice between life and cryptocurrency, the right pick is obvious. That’s why the game becomes more dangerous, not mush reasons left to hold the cryptocurrency.

Rajarshi Mitra from FXStreet claims that Bitcoin builds a heavy support level at the $5,000 mark. Per the confluence detector, Bitcoin shows no signs of strong support on the upside levels, however.

Next Bitcoin Halving is as Unstoppable as the Coronavirus: Who Will Win?

The bull trend can easily return Bitcoin to $14,000 level after the halving. Now, the price is seductively concentrating near $5,000. Many buyers will want to use the possibility, causing an upward trend to $7,000 and more. But the next halving in May 2020 can push the price up with the Bitcoin supply turning thinner.

What is concerning, miners are forced to leave the network. Per the mining pool stats, they spot massive turn-offs wave among their usual participants. After the Bitcoin price lost $3,000 in one day, many decided to either stop mining or sell all coins. They turned off the machines supporting the network, which means the difficulty will drop in near days. Decrypt reports that a hefty of Chinese mining rigs now sold to Russia and the Middle East, even despite the danger of coronavirus contamination.

This means Chinese miners either don’t want to return to mining or have new rigs and ready to pump the price and hash rate after the crisis ends. As of now, F2Pool has a 12% drop in their hash power, Poolin lost 18% and Btc.com 10%. Bitcoin’s global hash rate experience a huge drop from 136 million TH/s to 106 million TH/s. Hence, 24% of all the miners already left the network.

‘Safe Haven’ and ‘Store of Value’ arguments were destroyed by the Wall Street trends. Bitcoin maximalists must be shocked to see that their favorite asset is not magic. But yet another financial tool with downsides and a ton of more powerful competitors.

On the other side, Bitcoin offers a line of ‘features’ unavailable in other payment solutions. Such as anonymity, decentralization of validators, and fixed virtual supply. So no matter what, there will always be people buying, trading or developing Bitcoin. Especially after the halving, because Bitcoin will produce less of new coins per the block.

Bitcoin, Blockchain, Cryptocurrency news, News
Jeff Fawkes
Author: Jeff Fawkes

Jeff Fawkes is a seasoned investment professional and a crypto analyst covering the blockchain space. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.

Share this article
Related Articles