The leading cryptocurrency has proven its perseverance through years of tough market fluctuations, and the year 2020 was no exception.

Bitcoin Price Analysis – A strong start of the year 2020

BTC/USD 2H price chart at the start of 2020BTC/USD 2H at the start of 2020 – Tradingview

Bitcoin opened the year with a price of approximately USD 7,160 and was on a perfect uptrend. News of advancements in technologies, and adoption of the blockchain protocol in public and private companies worldwide helped convey this technology to the mass crowds.

The impact of COVID-19

BTC/USD 2H chart during MarchBTC/USD 2H during the March collapse – Tradingview

When the COVID-19 lockdowns were announced, markets around the world started to collapse, starting with the US stock market. All other markets around the world followed the sharp decline in prices, and the cryptocurrency market was no exception.

Correlation with legacy markets

Crypto enthusiasts used to hedge their legacy holdings by owning Bitcoins. But that’s not the case anymore, as correlations in trends are occurring between the US stock market and the Cryptocurrency market.

BTC/USD 1D chart during and after the crashBTC/USD 1D: The crash and fast recovery – Tradingview

The proof? Well, the COVID-19 crash is the perfect example among many other occurrences. Both the stock and crypto markets fell sharply and recovered rapidly.

Bitcoin Price Analysis – Where are we today?

BTC/USD 1W price chartBTC/USD 1W – Tradingview

The price of Bitcoin is in a sideways market, defined by a very strong support and resistance area. Those key blue lines are delimited by a resistance price of USD 12,500 and a support price of USD 10,000 which were key areas ever since 2018, when we witnessed the rise and the fall of the cryptocurrency market.

Bitcoin Price Analysis – What should you do NOW as a Trader or Investor?

Traders or investors
of any type of cryptocurrency should be
on the daily lookout of what happens to the price of Bitcoin
, as one of the
two scenarios should happen:

  • The price breaks through the USD 12,500 limits strongly, and the price will continue with a strong uptrend to reach the second resistance level of USD 14,000
  • The price strongly dips below the USD 10,000 limit and we’ll have a short term bear market

It is indeed a very
crucial moment not only for Bitcoin, but for ALL the other Altcoins as well. Bitcoin dominance today is around
60%. This means that the Bitcoin market cap makes up 60% of all the
cryptocurrency market. That’s why any major move in the Bitcoin price can take
other altcoins to new highs or new lows.

The current volatility
for the top 10 cryptocurrencies is very low, registering price movements lower
than 0.5% since yesterday. Bitcoin was seen slightly higher, trading above
$11,400 at time of writing. This “Low volatility” phenomenon usually signals
either a slow but steady uptrend, or an upcoming strong downtrend. It is often
a sign of buyers being wary of a high price, and proceeding with their trading
with cautiousness.

Weekly lookouts for Altcoins that are most
affected by BTC:

  • Litecoin (LTC)
  • Bitcoin Cash (BCH)
  • Bitcoin SV (BSV)
  • Ether (ETH)
  • Dash (DASH)
  • Monero (XMR)

Stay ahead, stay updated
Rudy Fares

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