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Bitcoin Falls Through $6,000 Support

March 29, 2020 at 23:38 by Matt Jackson

Bitcoin prices have continued their recent decline, falling to and through $6,000 resistance and now trading just above $5,900. Analysts had predicted a fall to $5,000 was needed before Bitcoin could fight back above its Year To Date highs. As is typical in the cryptocurrency market, Bitcoin’s movement has been aped by the rest of the market, with Ethereum Classic proving the only profitable coin of the top 50. Despite this, recent research shows the number of jobs in the industry has continued to increase, along with Bitcoin’s prominence on Twitter.

Bitcoin started 2020 on relatively ground, certainly by the volatile nature of the cryptocurrency market. On January 6, just a few days into the new year, Bitcoin’s unusually steady trading led gold enthusiast and well-publicized Bitcoin opponent, Peter Schiff, to Tweet that if 4% was the best Bitcoin could rally “how will it ever hit 50K, let alone 1 million?”.

On January 7, Bitcoin started to make ground, posting a 5% daily gain and going on to reach a high of $10,400 on February 12.

However, prices had slipped to $9,000 by March 7. On March 8, the day Italy placed its residents on lockdown in a bid to slow the outbreak of the Coronavirus, prices crashed from $8,800 to $8,300. On March 11, US President, Donald Trump, banned travel to 26 European countries and the World Health Organization (WHO) declared the Coronavirus a pandemic. Over the following 24 hours, prices plummeted 40%, reaching a low of $4,500. Bitcoin enjoyed a bounce in the proceeding week and made several attempts to breach the $7,000 resistance level, but it ultimately proved too much and the world’s largest cryptocurrency is now trading between $5,900 and $6,000.

Ethereum Classic is the only one of the top 50 cryptocurrency coins by market capitalization that has posted gains in the past 24 hours. The smart contracts platform, which was launched as a fork of Ethereum in July 2016, has gained 1% over the past 24 hours and is now changing hands at $4.86, having started the year at $4.50.

Cryptocurrency prices may have been suffering over the past few weeks, but research indicates that the blockchain industry itself continues to boom. Blockchain’s share of the job openings listed on Indeed.com has increased since the start of the Coronavirus, with many analysts predicting that it will prove to be the booming industry of 2020.

Bitcoin, specifically, has painted a similar picture on Twitter. The number of mentions of digital gold on the social networking platform has doubled in the first quarter of the year. However, altcoins have not performed well. The Ripple hashtag has seen a 60% decline since January and Litecoin’s Twitter mentions have reached a two year low.

At 00:15 GMT, Bitcoin (BTC) prices had fallen 4.65% to $5,936.73 while Ethereum (ETH) shed 3.64% from its price to trade at $126.08. Ripple (XRP) lost 6.95% to trade at $0.164. Bitcoin Cash (BCH) and Bitcoin SV (BSV) fell 2.82% and 4.5% and are changing hands at $207.96 and $149.71 respectively.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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