After last week’s big stock-market and crypto-market crash, everybody is excited about, what is going to happen on Monday.
Even though most of the crypto-influencers think, that bitcoin is a non-correlated asset, we saw the price of stocks, gold and bitcoin crash simultaneously.
Panic everywhere!
Due to the Coronavirus and its affections to the world-economy, even the strongest crypto-hodlers are starting to doubt, that bitcoin is able to hold the current price levels or even start a new bullish momentum.
It seems like technical analysis of an single asset is senseless, because everything just got sold over the last days.
The question is… when will this end?
Two options…
At this moment in time, there are two options for the markets.
1. Bounce back
Maybe this option might be a little to optimistic for investors, which just lost about 50% of their crypto-assets (in USD value), but there is a descend chance, that politicians follow Chinas example and start ignoring the virus and “restart” the economy, without taking notice of rising death-rates and infection rates.
Of course this is not the right way to go on in terms of humanity, but this kind of procedure could maybe save us all from a second 1929.
If the countries decide, to not talk about the virus anymore and support the companies with cheep credits or financial injections, there might be a chance for the markets to recover.
2. Another sell-off
The second option is the more probable in my opinion. The main supply shock due to countries stopping big parts of their exports is jet to come.
More and more countries are starting to cut down public life and productions in order to keep their population healthy. Because of the globalization, supply chains are easily vulnerable by just one part of the chain being unable to produce or to deliver.
There is a possibility, that the markets bounce back up in the short term, but after that start to correct even more.
What does this mean for Bitcoin?
Bitcoin is still seen as risky asset. All over the world, shops are closing, people are afraid to go to restaurants, big event are being canceled.
If you assume, that behind these events, there are people losing their existence or have massive financial losses, the first thing this people are selling is risky assets.
Conclusion
In order to make any prediction, we have to wait for the markets to open, because this is not the time for speculation or shaky hands.
Keep yourself calm in exciting times like this and don’t let emotions make you do things you will regret later.
I will do a technical analysis on Tuesday, to keep you updated.
Until then… stay safe and take care of your friends and family.
