Bitcoin Breaks $7,200 Support In Unprecedented 25% Collapse – Are We Headed Beneath $5,000 Today?

12 Mar, 2020 Updated 12 Mar, 2020

By Yaz Sheikh

Contributor

Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.

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Bitcoin just dropped off a cliff after it dropped over $2000 in just one day.
The cryptocurrency dropped around 25% over the past 24 hours as it currently trades at $5,918.

So, Bitcoin just fell off a cliff in an unprecedented 25% price fall. The cryptocurrency dropped from around $8,000 today to reach the current trading price of around $5,918 in a move that has shocked the entire ecosystem.

This price fall is largely driven by Coronavirus fears after President Trump announced that he would be closing borders for any European tourists for at least 30 days. This sent shockwaves of fear throughout the entire economy as both the S&P 500 and Dow Jones Industrial Average plummetted to fresh lows not seen in over a year.

This latest Bitcoin price drop has now wiped out any of the positive gains seen in 2020

Bitcoin Price Analysis

BTC/USD – Daily CHART – SHORT TERM

Short BTC on Duedex

Market Overview

The market is currently extremely volatile right now and we can expect the price to continue to whipsaw over the next few hours. However, when we look at the daily chart above, we can clearly see Bitcoin dropping off the cliff as it plummetted from $8,000 to reach as low as $5,900. It has since recovered slightly above $6,200 (as of writing the article) but we can expect the depressive price action to continue over the following few days.

Short term prediction: BEARISH

Bitcoin is extremely bearish, there is not much more to be said about it.

If the sellers continue to drive beneath $5,900, the first level of support is located at $5,500. Beneath this, additional support is located at $5,381 (downside 1.272 Fib Extension), $5,072 (downside 1.414 Fib Extension), and $5,000.

Beneath $5,000 support can be located at $4,800 and $4,672 (downside 1.618 Fib Extension).

Key Levels

Support: $6,200, $6,000, $5,900, $5,858, $5,500, $5,381, $5,072, $5,000, $4,800, $4,672.

Resistance: $6,500, $7,000, $7,200, $7,500, $7,600, $8,000, $8,250, $8,461, $8,672, $8,979, $9,000, $9,100.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.