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Bitcoin Price Finds Support At $5,000

Benson Toti

Bitcoin’s next step very much depends on whether bulls can hold support above the key level.

Bitcoin has spiked +6.75% as of press time as it looks to consolidate support above $5000.

The top crypto appears to have navigated what was a bad day for BTC price last Thursday, inching upward on the day. Bitcoin has hit an intraday high of $5,426.

As of press time, Bitcoin is inching higher as it moves away from its opening price at $5,001. Although volatility has seen it touch an intraday low of $4,936, the top cryptocurrency is showing signs of a strong push towards $5,500.

Last week Bitcoin dipped over 20%, reaching lows of $3,800 amid a selloff like no other. The drop signaled a potential catastrophe for BTC investors as a breach below that level would have opened it up to a further plunge to prices near $3,100. The last time Bitcoin traded that low was in December 2018.

COVID-19 impacting prices

There’s palpable fear within the investment community as the COVID-19 pandemic continues to rip global markets.

The Federal Reserve cut its interest rates to near zero and announced a $700 billion QE (quantitative easing) program. It was meant to cushion the markets against the impact of the coronavirus pandemic. But despite that, the Dow dropped 2,997 points on Monday to tank 12.98%. The S&P 500 had no better luck as it dropped over 300 points to close at -11.5% Monday.

Even gold, the world’s safe-haven asset plunged Monday to signal that the broader market selloff wasn’t sparing anything. Gold dropped 6% to lose as much as 5X the entire market cap of Bitcoin.

Gold topped $1,700 per oz last week but is significantly lower after yesterday’s tanking. At press time, the precious metal is priced at $1,487 per oz (-1.74% down).

Forecasts point to an economic contagion that could see markets plunge further into Q2 2020. Already investors are beginning to feel the impact of worldwide shutdowns, with airlines grinding to halt as travel bans increase. Governments around the world have also begun shutting down schools and restaurants, while citizens are advised to stay at home and avoid large gatherings.

BTC/USD is exchanging hands at $5,394. Ethereum (ETH) is also up 5.75% while XRP is trading in the green at 5.57%. The rest of the top 10 coins are trading higher, with Bitcoin Cash (BCH), Bitcoin SV (BSV) and Binance Coin (BND) hitting double-digit gains.

Image courtesy of Shutterstock.

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