A couple of thoughts about bitcoin and coronavirus.

SOURCE:

https://vk.com/wall-75313_3345

Friends,
recently in our telegram channel: https://t.me/generation_Fheated discussion about the prospects of cryptocurrenciesagainst the background of the Chinese coronavirus and the transfer of most financial transactions to the digital sphere. The big question is: “Could this trigger the growth of electronic money?” Considering that the Chinese population, in addition to its large size, is characterized by an abundance of computer-digital integration (in large cities) in everyday life, this could lead to the growth of electronic money.

Yes, starting in '13, the Chinese authorities bannedfinancial companies to conduct transactions with bitcoins (the statement states that bitcoin is not a currency in the real sense of the word). Financial companies are not only prohibited from dealing directly with Bitcoin, but also from publishing quotes or underwriting financial products related to Bitcoin. At the same time, individuals are free to engage in online transactions at their own risk. Bitcoins are considered as a kind of commodity, but not money. Thus, the use of cryptocurrencies for individuals is still fully accessible (source: ru.wikipedia.org/wiki/%D0%9F%D1%80%D0%B0%D0%B2%D0%BE%D0%B2 %D0%BE%D0%B9_%D1%80%D0%B5%D0%B6%D0%B8%D0%BC_%D0%BA%D1%80%D0%B8%D0%BF%D1%82%D0 %BE%D0%B2%D0%B0%D0%BB%D1%8E%D1%82#%D0%9A%D0%B8%D1%82%D0%B0%D0%B9 )

Since it is still the flagship of cryptocurrenciesis Bitcoin, we decided to analyze our question in the context of this currency. To make it easier to perceive the information, look at the graph below. Here we see that the price at the beginning of 2020 “found” the third reference point (support), from which we now see an upward reaction, while a breakdown occurred, both in the current downward correction and in the more global one - stretching all the way back to the beginning of 2018 of the year!

  

To determine the potential prices -stretch the familiar Fibo grid from the top to a minimum of 19 years. One of the most powerful levels for this instrument is level 50 - it takes place at a quote of $ 11,500. And if now the body of the weekly candlestick closes above the current 38 level - $ 9500, then the road opens exactly to 50 Fibo, there you can fix part of the transaction and transfer it to breakeven and try to keep it to the level of 61.8 Fibo - $ 13,500.

 

This is far from the limit for price movement, butImmediate resistance levels where price can make a stop. Where the limit is - no one knows - it can be a departure for $ 20k or more, or it may end with the damping of the current impulse and the asset rolling down to the side plane - nothing can be said absolutely on the market. Especially in the cryptocurrency market, where everything is pretty ephemeral, and the technical analysis is very arbitrary, but if all these “buts” are discarded, there are certain signals for growth - let's see how much they come to life.

Py.Sy. It is not a guide to action, but it provides an opportunity to think.

 

ARTICLE ON OUR SITE:

https://www.spb-finance.com/post/par-mind-obitcoin--coronavirus