Have We Just Witnessed The Biggest Bitcoin Shakeout Ever?
The global financial market is still trying to come to terms with the events of this past week. Traders saw some of the worst drops in recent times. Bitcoin traders experienced what could turn out to be the biggest shakeout ever.
I was hesitant to post this as I don't want to be too hasty, but I really think that might have been it. Lets get the monthly to close above 6.4k for confirmation, but LTF wave counts do look complete. This may have been one of the most perfect shakeouts I have ever seen. $BTC pic.twitter.com/337W0xAfoG
— Credible Crypto (@CredibleCrypto) March 13, 2020
In just a week, Bitcoin dropped from a high of over $9,000 to lows of only $3,800.
Was it The Coronavirus or Whales Playing Games?
Among the reasons explaining the drop in Bitcoin, value is the fear of the spread of COVID-19. Bitcoin, and other cryptocurrencies, are considered as value storage assets; however, the events of this past week have put their description into question.
At a time when commodities such as gold were increasing in price, Bitcoin plummeted to dangerously low levels. The extreme drop witnessed was likely propelled by the fact that Bitcoin was losing value when it was supposed to be increasing.
It is also possible that the bloodbath witnessed these past few days was a severe shakeout. Based on Credible Crypto’s analysis, the trend experienced from 2019 was leading up to the shake-up. Bitcoin’s current price may be its lowest this year and things are likely to get better if the cryptocurrency closes above $6,400 by the end of March.
If this is the case, then traders have nothing to fear. The price drop suggested an upcoming bear market; however, this could clear up any worries created in the past few days. Further, the forthcoming halving will likely have a positive effect on the price of Bitcoin; the market could be weeding out traders just in time for the halving.
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Sal Miah is the senior editor at Blockspectator News and is a regular contributor to a variety of cryptocurrency news websites and projects. He has written hundreds of articles on numerous topics related to blockchain and also has a special interest in financial markets. Contact him directly at firstname.lastname@example.org