Bitcoin’s upward price trend in the past month has apparently cooled down. Although the price drops aren’t that dramatic, it has failed to reach the $10K level for the second week in a row, bringing back memories of 2019 crypto owners and traders are not fond of.
After shooting past the $10K mark in early February, Bitcoin has been in a kind of a slump. That hasn’t depressed bulls – it’s still a bullish market out there and that’s good. Still, things such as the Coronavirus outbreak have drastically affected the price, leading many to suspect if bulls were behind the rally at all.
As the virus spreads further and more deaths are confirmed, the price could fall even further. That, however, doesn’t concern experts. Since a global pandemic isn’t likely to be on the books, the price should stabilize as soon as the outbreak lessens a bit.
Price Drop on Tuesday after a One-Hour Volume Spike
Early on Tuesday, a massive hour of high-volume trading resulted in Bitcoin trading lower than expected. The price jumped from the $8.6K region to nearly $8.9K in a single hour but has since fallen back to $8,600 quickly. The drop might have been influenced by the Federal Reserve’s announcement of a 50 basis point interest rate cut as an effort to ease concerns about the Coronavirus outbreak.
The 2% drop follows a nice 4.6% gain on Monday that dragged Dogecoin along with it. DOGE saw a 1% gain in the last 24 hours which will be great news for its supporters.
At the beginning of February, Bitcoin raced up to $10,500 with clear signs that the price could jump over the $11,000 obstacle. Even though the largest cryptocurrency failed to go that high, there was still a bullish sentiment as many experts believed that a drop was inevitable to make the cryptocurrency move forward.
Unfortunately, the Coronavirus outbreak to global markets neutralized this. Affecting the financial sector, the numerous confirmed cases around the world made investors wonder worst-case scenarios that were behind Bitcoin’s slide. Generally, the sentiment among Bitcoin investors is positive in the long run. In the short run, though, there’s a bearish sentiment driven by the unstoppable COVID-19 virus.
Bulls will play a key role in the long run. If they can keep the next support levels up, the price will likely stay in the bullish zone.
Experts Calm amidst Fears of Further Price Drops
Although the short-term sentiment is bearish, experts aren’t afraid. Bitcoin’s price is a result of the ongoing Coronavirus outbreak that could even see it slide down a bit further. As soon as positive developments regarding the virus hit the news, the sentiment will turn bullish almost instantly. Bitcoin should continue where it stopped.
The recent price drop followed a golden cross on the daily moving averages, potentially signaling an upward move. The short-term panic should disappear soon so the leading cryptocurrency can finally move forward as expected.