Bitcoin is bearish and analysts are eagerly searching for the reason behind this. Though it is clear that it has something to do with the Coronavirus epidemic, a number of analysts, however, continue to explain what they think could be the reason.
One prominent analyst has pointed out three possible triggers for this bearish scenario the market faces.
Coronavirus Only One Of the Possible Bear Triggers
Jacob Canfield, a prominent analyst has pointed out three possible reasons why Bitcoin is currently bearish. Many analysts have pointed out that current bear crypto market is a result of a market sell-off following the outbreak of the Coronavirus epidemic.
The same fate is shared by the stock market too. The narrative that whether whether Bitcoin is a safe haven asset or risk asset is now a subject of debate in the crypto community.
For Canfield, this is just one of the possible reasons.
If you're looking for bearish narratives, there are currently 3 that could be impacting #bitcoin
1.) Coronavirus (all markets selling off)
2.) Miner hoarding (typically strong bearish indication)
3.) PlusToken scam dumping on the market again. (They moved 19k bitcoin yesterday)
— Jacob Canfield (@JacobCanfield) March 7, 2020
He points out that another possible bear catalyst is miners hoarding. Miners are hoarding in anticipation of a price jump with the upcoming Bitcoin halving.
This has been pointed to be historically negative for Bitcoin. As they sell less than they mine, they protect the market which is too soft to sell into.”
#bitcoin miners have recently started to sell less than they mine. Historically, that has coincided with negative returns and reflects a weaker market bid. Miners are hoarding because they want to protect the market which is too soft to sell into. Bottom row turned green. pic.twitter.com/JPy0RqwEwQ
— Charlie Morris (@AtlasPulse) March 4, 2020advertisement
The third scenario has to do with the PlusToken Ponzi scheme. The scheme which saw the scammers make away with nearly $2 billion, could be dumping. This is supported by recent heightened activity by the scammers.
In the last couple of days, they have especially been using mixers according to one source.
~13k in new PlusToken mixer deposits in last 24 hrs.
Almost all previous mixer deposit change has entered mixing, confirming my theory.
Distributions still on/off. Much slower than September and November.
New report and full sit rep imminent. pic.twitter.com/vwrBuVk272
— Ergo ∴TxIDs Or It Didn't Happen∴ (@ErgoBTC) March 6, 2020
Bitcoin Above $9K But Not In The Clear
Bitcoin has shown life in the last few days as it climbed above $9,000. This is after spending days below it and in the $8,600 and $8,800.
Bitcoin has now dropped below $9K again. This could see it spend another considerable time in the $8,800 range. With Canfield’s reasons; the Coronavirus will not end soon which means we could see Bitcoin bleed some more.
With the halving, bitcoin will definitely bounceback as demand continues to increase. Lastly, the PlusToken Ponzi dumping will end. This will see Bitcoin bounceback.