Bitcoin Slides 8% amid Steep Decline in Stock Markets

Bitcoin Slides 8% amid Steep Decline in Stock Markets

Bitcoin (BTC), the largest cryptocurrency with market cap, plunged more than 8 percent amid a steep decline in stock markets, hurt by concerns about the widespread of coronavirus.

Technically speaking, analysts said the BTC broke the bearish channel on 5 March, which signals further declines in the near term.

They expected the cryptocurrency to target $8,100, and then $7,500 in the short term.

The BTC’s key resistance will be at $8,700, and then $10,500, with the last heavy area of resistance being around $11,050.

However, most cryptocurrencies would face more fluctuations over the next days amid difficulty in mining.

The analysts said the difficulty in mining would increase next week by 8 percent compared to last week, which represents a positive sign for the BTC, especially amid weak supply.

In comparison, the difficulty of BTC mining has continued to increase every two weeks since the beginning of 2020 by 4-7 percent.

The coming days are important for the BTC for several reasons, mainly concerns about the spread of coronavirus.

In order to reach the $10,500 level, the BTC needs to reclaim the 8,700 level and then break it to reach $9,200. On the downside level, breaking the $8,100 and $7,500 means targeting the $4,000 level.

It is worth noting that the coronavirus has infected more than 100,000, and killed over 3,000 persons.

Crypto conferences delayed on coronavirus outbreak

A number of crypto conferences across Asia have also been postponed due to the spread of the epidemic, such as TOKEN2049; a major crypto-event held every year in Hong Kong..

TOKEN2049 was rescheduled from mid-March to 7-8 October 2020.

Despite efforts to control the deadly virus through closure of border crossings with mainland China, Hong Kong was experiencing even greater uncertainty because of local anti-government protests.

With the outbreak of coronavirus, several countries took tough measures to control the epidemic. Accordingly, the crypto community decided to launch the coronavirus-backed coin CoronaCoin (NCOV), given the virus’ devastating impact on people’s health.

At the time of press, the BTC dropped 8.80 percent to $7,981.49.  

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.