Right now Bitcoin is at decisive levels about its long-term trend. It presents a strong resistance between the 10,000 and 11,000 levels, if it manages to break that resistance, Bitcoin could begin to consolidate a good bullish rally that would affirm its long-term growth and attract many new investors to the market.
From a technical point of view, the last Bitcoin rally, from 7,000 to 10,000, is due to the 0.236 Fibonacci support and also the long-term trend support.
But from a fundamental point of view, I think that Bitcoin has received considerable appreciation due to the uncertainty about the Coronavirus and the effect it could have on the world economy.
Recall that underdeveloped countries are the most likely to use cryptocurrencies as a method of payment and it is precisely those countries that could emerge the most battered from an epidemic worldwide. So far, the Chinese government has announced a total of 1300 deaths from the virus, which is not much yet. If the epidemic spreads to underdeveloped countries the effects on their economies could be devastating, the WHO (World Health Organization) has reiterated that it is the third world countries that are most at risk. As a consequence of such a disaster, the adoption of cryptocurrencies could increase rapidly in the event that traditional monetary systems were to collapse.
From a technical point of view, the last Bitcoin rally, from 7,000 to 10,000, is due to the 0.236 Fibonacci support and also the long-term trend support.
But from a fundamental point of view, I think that Bitcoin has received considerable appreciation due to the uncertainty about the Coronavirus and the effect it could have on the world economy.
Recall that underdeveloped countries are the most likely to use cryptocurrencies as a method of payment and it is precisely those countries that could emerge the most battered from an epidemic worldwide. So far, the Chinese government has announced a total of 1300 deaths from the virus, which is not much yet. If the epidemic spreads to underdeveloped countries the effects on their economies could be devastating, the WHO (World Health Organization) has reiterated that it is the third world countries that are most at risk. As a consequence of such a disaster, the adoption of cryptocurrencies could increase rapidly in the event that traditional monetary systems were to collapse.