Bitcoin Fails To Go Above $6,000, Analyst Warns Of A New Drop

Bitcoin is now in for more jump scares after the dominant cryptocurrency did not manage to go over the $6,000 margin. The expanse of the novel coronavirus and the COVID-19 disease spread on the financial markets was what triggered BTC and other markets including stocks, gold and commodities. As we can see from the news today, Bitcoin fails to go above any level that is the current $5,400 one and failed to break above $6,000 overnight.

For those of you who read our cryptonews, you know that the $6,000 level is of paramount importance and one that historically served as a strong support/resistance. Entering the weekend session, BTC is now down by close to 4.5%. The plunge appears as traditional markets take a break from their worst week since the 1987 crash.

Bitcoin’s 24/7 open market leaves it under adequate risks of dipping further – mostly as traders feel uneasy to open fresh long positions near $6,000. As Bitcoin fails to go above $6,000, the latest price crash suggests that the cryptocurrency is back inside its medium-term Descending Channel. It also tested the support trend line before, bounced back and faced the $6,000 level which acts as a wall – pulling back again to hit the support trend line all over again.

A move of such extent now means that Bitcoin could easily crash below the $5,000 levels over the weekend. The technical scenario matches the sentiment with the booming scarcity around the coronavirus, leading a lot of investors to dump their open positions for cash liquidity. As such, Bitcoin fails to go and visit levels above and remains caught up in the global market rout.

According to Tone Vays who is the analyst that predicted Bitcoin’s breakdown months ago, the dominant coin could fall below $5,000. Vays said that markets continue to have problems which may lead BTC to establish new lows for 2020:

“I still think Bitcoin will fall below $5,000 one more time,” said Mr. Vays in a video blog. “I still think – as crazy as it is for me to say – I don’t think there’s been enough pain. I don’t think there’s been enough frustration.”

All in all, the Bitcoin and altcoin news and rumors show nothing than more drops and declines today. The only greens are seen from the fifth cryptocurrency to the tenth one, where coins are adding nothing more than 3% on the day. Still, they are far from their yearly highs.