Since 2008, global stocks are expected to head into the worst week due to corona virus outbreak. The epidemic proved to be a catalyst for the global economy that was already anticipating recession. As traditional stock markets brace for the impact, its rival crypto market has now started to show downward trend.
As the leading crypto bitcoin, has lost almost $20B of its market cap since the start of this week and it is not showing any sign to bounce back, a bitcoin trader Alessio Rastani, shared his btc prediction that can surely ring some alarming bells in the crypto community.
Bitcoin weekly chart has fallen below the long term trend line and today it is below the 21 weekly moving average. The warning sign was always on the cards since Sunday 23rd February, while bitcoin was trading in $9600s, it stopped at the trend line resistance and failed to cross the $10k psychological resistance before Monday.
Currently things are not looking too well for bitcoin every since it has fallen below $9600, the support level for the crypto. Now bitcoin is closer than ever to the extremely crucial level of $8,300 and if it falls below that, then we would officially be in the bear run that can get extremely bad for the crypto as it will open doors to some extreme lows.
But Why $8300 is Crucial to Bitcoin?
Three critical levels points to $8,300, firstly $8,300 is closing lows for bitcoin in the last few weeks that are also considered support levels, the 144 simple moving average (SMA) and the trend line. If bitcoin hold above 50 weekly average (SMA), the trend line and support at $8300 and go up from there, only then it will exhibit bullish trend.
Time window from the 2nd to 6th March will be decisive for bitcoin as it will decide either the crypto will go into a bullish or bearish trend. If in that time window bitcoin fail to bounce back and fall below the $8300 critical support, it will be show a reverse trend from bullish to bearish.
It is true that bitcoin performed comparatively fine and has still not seen the type of bloodbath major stock markets have seen over the last couple of weeks but it will surely show a downward trend if the crypto cross the $8300 support.