A number of signals continue to bind Bitcoin into the current global economic crisis. Although BTC has shown stability over the past few days, some analysts are seeing more price drops ahead.

The stock market will impact Bitcoin

Josh Rager posted a chart showing that the S&P 500 (SPX) has fallen below its 200-week MA line for the first time since the 2008 financial crisis.

In 2008 after a break below the 200 WMA, price came back up over 9% then fell another 49%

Currently, the $ SPX rejected off the 200 WMA after retest from a 20% rally over this past week

If SPX sees new lows, the price will have a negative impact on crypto and on $ BTC Bitcoin pic.twitter.com/42UywIJGi3

- Josh Rager 📈 (@Josh_Rager) March 28, 2020

The move is significant, because the last time SPX fell below this level, it remained there for more than two years when a bear market took over Wall Street. Rager predicts that the continuing trend of Bitcoin price will be affected because investors will have very little fiat to put into the cryptocurrency space.

The analyst was also skeptical of any short-term price increases, noting that he favors short trades if Bitcoin breaks $ 7,000.

Didn’t get the $ 7k + short entry but at this point, opened just good to see $ BTC move more than $ 50

Cheers to volatility https://t.co/zinaTLTwwR

- Josh Rager 📈 (@Josh_Rager) March 28, 2020

Rager's company, BlockRoots, posted a video yesterday with more data showing that Bitcoin price could continue to be affected as the global economy plunges into recession. Notably, the company emphasizes that more than three million Americans are currently on leave, and the impact will soon occur. This astonishing figure indicates an impending bear market.

(embed) https://www.youtube.com/watch?v=r4-Q4lseK9M (/ embed)

Can BTC prove to be a safe-haven?

Although Rager is not optimistic, other analysts predict a noticeable increase in Bitcoin price. In fact, while the global economic situation is really terrible, it is also creating a great scenario where many investors will seek safe haven for their assets. Unsurprisingly, the price of gold is rising along with other hard commodities.

* Hard commodities (hard commodities): natural resources that are usually exploited or extracted (gold, rubber, oil, ore minerals ...)

If this trend continues the cryptocurrency market will also see greater interest. Importantly, governments are now eager to print large volumes of fiat and undoubtedly cause inflation. Over the years, Bitcoin has always had power in such cases.

In addition, there is no decrease in development on the blockchain space, nor is network activity affected by price fluctuations. Mining operations remain strong as interest in trading. Importantly, large organizations continue to show an interest in platforms like Ethereum and VeChain.

An important test for Bitcoin is the upcoming halving, scheduled to take place in May. The price increase is expected to underpin the argument that the fundamentals of Bitcoin are still strong and the cryptocurrency is on the right track for mass adoption.

You can see the price of Bitcoin here.

Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Annie

According to Bitcoinist

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