Bitcoin price could drop to $ 7,500 before launching to $ 16,000

After leaping above $ 5,900 today (March 16), by the time of writing, the Bitcoin price has dropped by nearly $ 1,000 to return below $ 5,000. So, since the horrific flash crash last week – which saw BTC drop nearly 50% in a day, this is the first time the price has dropped below the key $ 5,000 mark.

Bitcoin price chart. Source: TradingView
Bitcoin price chart. Source: TradingView

Bitcoin's decline came after global stock markets continued to plummet on Monday. According to data from Investing.com, all major US stock indices fell from 5%.

The poor performance of BTC over the past few hours seems to confirm that there is still a strong correlation between the trajectory of the king coin and the stock.

What will come next with Bitcoin?

With BTC dropping below $ 5,000, it appears that the bears are still in control of the market, at which point, many investors wonder what will happen next to the cryptocurrency. Top.

Unfortunately, the short-term outlook seems to be bearish.

Byzantine General – a well-known trader on Twitter, recently suggested that Bitcoin's failure to resist the $ 6,000 resistance today and the future funding rate back to 0%, likely BTC will be pushed to the bottom of the range. micro short 4,700 USD

He further explained that given the current devastated traditional markets – which are still happening due to the negative impact from the spread of Covid-19, BTC is unlikely to recover soon.

As previously reported, a flashing signal before Bitcoin dropped by 50% from $ 6,200 to $ 3,150 by the end of 2018 seems ready to reappear.

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The signal mentioned is Hash Ribbons – a technical indicator that tracks the moving average of Bitcoin's hash rate. It shows that miners are on the verge of “surrendering” or when miners are forced to “draw power” as the price of BTC drops below the cost of mining.

In addition to predicting the event of Bitcoin's surrender at the end of 2018, the index also appears before the 20% drop in late 2019, before the last rally sees Bitcoin rise 50% to $ 10,500 after just a few. month.

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According to NewsBTC
Translated by ToiYeuBitcoin

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