Bitcoin plunges below $ 8,500

UNITED STATES (OBSERVATORY NEWS) — Bitcoin continued to fall on Friday, now below the $ 8,500 threshold, after timidly trying to rebound yesterday, never questioning the bearish bias that has dominated for several days.

Since Monday’s peak at $ 10,022, the BTC / USD has therefore fallen by more than 15% at current prices.

If the reasons for this decline remain unclear, it at least confirms that, contrary to what some people thought, Bitcoin is not a safe haven.

At several stages of the China-US trade war, as well as during the recent spike in tensions between Iran and the US, Bitcoin soared when the stock markets were panicked, suggesting that the cryptocurrency was starting to behave like a safe haven.

However, this week’s BTC plunge, which is the worst week in the world equity market to fall since the financial crisis, completely challenges this assumption, a lesson to be learned in the future.

From a technical point of view, it should be noted that the downward acceleration this Friday confirms a break below the 200-day moving average already tested without success the previous two days. The BTC / USD also broke today under the 50% retracement of the upward trend visible between the very beginning of the year and the 2020 peak of February 13 at $ 10,489.

If the fall is further accentuated, the next potential sales target is the 100-day moving average around $ 8,300, before the psychological threshold of $ 8,000.

Finally, it should be noted that the other main cryptocurrencies are not outdone with regard to the current bearish acceleration, with the Ethereum which fell by -5.08% over 24 hours, while the Ripple lost 2.72%, and that the Bitcoin Cash plunged more than 7%.


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