30% off the disaster called for Bitcoin?







Over the past decade, cryptocurrencies have tested many use cases, primarily as a means of exchange and store of value. For Bitcoin, although designed to be the payment system and the next currency generation of the world, it has shaped itself as a long-term asset over the years.


In the latest episode Blockchain Insider podcastCoinfloor CEO Obi Nwosu talked about the different demographics within the Bitcoin community and hinted that Bitcoin was an anti-inflation asset.


According to Nwosu, the demographics of investors are quite diverse in the Bitcoin community. As for cryptocurrencies, there are users who see it as an investment tool, but others are interested in novelty and what they offer, like decentralization and autonomy. Nwosu says:


“Long-time speculators are betting on the basic feature or purpose of Bitcoin as a store of value. However, the short-term speculators are speculating on Bitcoin, ETH, etc. not really interested in the nature of the assets. ”


Unlike many in the crypto community, Coinfloor's CEO has not commented on Bitcoin's performance in the past 10 days. Considering carefully how Bitcoin has risen relative to other traditional financial assets during a market crash, he said:


"We talk about the markets there Comeinand bigger than Bitcoin market. G20 or 30% off on the Bitcoin market is really good compared to a 10% drop due to circuit breakers in traditional markets, the actual number much bigger.


This is worth considering because there have been recent alarms related to the development of the economy, with the S&P 500 falling by more than 30%.



S&P 500 index | Source: TradingView


While the economic impacts from the Corona crisis may be challenging and even have consequences until the next few years, the issue of hyperinflation is once again a top priority. However, Nwosu felt:


“The perception of Bitcoin value is increasing not because of its price increase. Bitcoin is not an deflationary asset in that sense, but an anti-inflationary asset. It is trying to keep its value, while the inflationary nature of money is losing value over time. ”


He concluded:


"The US government added $ 1.5 trillion to the balance sheet, the inflation ratet will probably be delayed, but it will away from numbers Small that people hard to recognize. 2% a year and potentially significantly higher”.


Hourly chart


bitcoin


BTC / USD | Source: TradingView


Increasing wedges are usually a bearish pattern. As seen in the chart above, there's room for Bitcoin to climb a little higher and perhaps even retest $ 7,050. If denied by this level, the price will break out from $ 7,000 to $ 6,440, followed by $ 5,565 and finally to $ 5,364.


The last level is the control point (PoC - the most traded price in the visible range). Currently, the PoC will act as a support and a bottom. However, falling below this level would be disastrous.


In addition, 50-DMA and 200-DMA are converging and the ability to reduce to PoC can create death cross - an extremely bearish signal for Bitcoin.


In terms of difficulty adjustment, the recent chaos caused by dump pricing also increased the block production time of the Bitcoin blockchain. On March 18, the block time is 860 seconds or 14 minutes, which is 4 minutes off the normal block production time of 10 minutes.


bitcoin


Block production time | Source: Glassnode


Conclude


Bitcoin price seems to be on the verge of falling and could be as low as $ 5,500 or $ 5,300. Also, if the price determines the trend higher, $ 7,000 will be the first resistance area.


You can see the price of BTC here.


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


Minh Anh


According to AZCoin News




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