Bitcoin price experiences a big drop
A few months after Halving and in the midst of global uncertainty due to crownvirus problems, the price of Bitcoin plummets, falling by more than 10%.
The USD 6,500 floor
Last Monday Bitcoin experienced a surprising drop in its price, reaching over 10% loss and breaking the USD 8,000 down for the first time since the beginning of January 2020. After the unexpected fall, the price of Bitcoin experienced a slight recovery that seems to indicate that it is only a typical rebound that precedes the follow-up of the downtrend.
A study by Financial Move suggests that Bitcoin would reach USD 6,500 dollars before recovering the upward trend, which would represent a 20% devaluation with respect to the current price. The USD 6,500 would be an ideal point to buy Bitcoin with a medium and long-term investment in mind, according to the Financial Move analysis. The main reason why the study indicates USD 6,500 as the floor for the price of Bitcoin is that this value represents the exponential moving average of 100 days (EMA 100) in the daily chart, which is always a strong indicator of both supports and of resistance in asset prices.
The year 2019 was positive for the price of Bitcoin, reaching twice USD 13,000 and even exceeding them in short periods of time. In the study, Financial Move explains: "We could see a consolidation of prices after the rise that made Bitcoin reach $ 13,500." Many analysts said that the price of Bitcoin would not fall below USD 10,000 and in recent weeks the market has witnessed the great fall of Bitcoin that accompanies the great falls of traditional world markets such as the stock market. The United States and Oil that were seriously affected by global uncertainty and crownvirus related issues.
However, taking a greater perspective on the future of Bitcoin, the halving that will take place in mid-May is a strong fundamental signal that indicates that the price of Bitcoin will have a great appreciation. The reason for seeing this event (halving) so positively is the experience of the two previous halvings in which the price of Bitcoin experienced exponential increases.