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Bitcoin price on the brink of disastrous decline after resurgent turmoil


On March 12 we saw the effect that the global stock market can have on Bitcoin and the cryptocurrency market in general. The price of the top ranked cryptocurrency is plummeted from $ 9,500 to $ 3,782. Bitcoin and most other alternative currencies have managed to rebound, but fear of a new pandemic could be renewed.

Although the global stock market is unlikely to collapse in a similar fashion, we could still see a prolonged bear market in the coming months.

Bitcoin is currently trading at $ 9,060 and has lost its daily uptrend after a significant rejection of $ 9,400. The bulls still hold a long-term trend line, but they have lost the daily 12-EMA and 26-EMA and are approaching a stronger bearish cross.

Trading volume has been decreasing every day just like Bitcoin's volatility. Traders and investors are unsure where Bitcoin is going, as most of the breaks have turned into fakes.

How is the global stock market related to Bitcoin?

Cryptocurrency enthusiasts don't want to admit that cryptocurrencies are closely related to the stock market. Bitcoin, although sometimes called digital gold, is currently far from acting like gold. The idea behind gold is that when there is economic uncertainty, it can be used as a safe haven and overall gold has been a safe haven. Even in the last crash, gold only lost a little value before firing again.

On the other hand, Bitcoin lost more than 50% of its value in almost 24 hours and has only managed to recover now. Obviously, it is difficult to consider Bitcoin as a safe haven considering the volatility of this market. The biggest problems with cryptocurrencies are the lack of trading volume and liquidity. These two factors are crucial because any illiquid market can suffer volatile movements, up or down.

It is very difficult for Bitcoin or any other cryptocurrency to maintain a stable price when only one person can move the entire market with a relatively low amount of money. The fear of a new wave of crisis is already affecting the stock market and Bitcoin. Bitcoin's last collapse a few days ago was just after the S&P 500 and other indices also collapsed.

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