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..
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.