Crypto coins, which have recently experienced one of the sharpest declines in their history, have entered the withdrawal process by facing selling pressure like many products in financial markets. As a result of this retreat, especially led by bitcoin, investors are wondering where the bottom level is or after which levels the upward movement may gain momentum.
It is possible to say that the financial crisis and then the coronavirus played a role in the contraction in the economy. Borrowing increased in the market and the need for cash arose. The sale prices of stocks, commodities and cryptocurrencies in large quantities by institutional investors created serious volatility, almost to the level of the 2008 crisis. In this context, on the one hand, the Fed pumped cash into the market, and on the other hand, the central banks of countries such as the European Central Bank, Canada, Japan, the United Kingdom and Switzerland decided to expand the swap line opened by the Fed in order to provide dollar liquidity to the
markets.
Countries, on the other hand, announced that some brands could be nationalized by implementing a rescue plan. Under all these conditions, the use of banknotes decreased, and contactless payments and the orientation to e-commerce reached a record level as of March 2020. In addition, we see that the individual investor has started to turn to crypto coins with the desire to buy at a low price, in this context, the
bitcoin price
has moved above the 5000 level.
If we look at the process ahead, it can be said that if the economy is loosened or the effects of the coronavirus are weakened, the individual investor may want to switch to risky assets. In the medium term, the increase in contactless payments, the use of digital money and
Blockchain
With the spread of solution programs, it is among the topics that are talked about that a bull market can be seen in crypto coins.
What Levels Should Be Followed?
In particular, if it does not fall below the 5000 USD level, it will play a triggering role in the upward movement in bitcoin. In case of negative news and effects, it is important that the 6500 resistance is overcome and maintained above the 7328 level as the first step of the main rise in the cryptocurrency, where withdrawals up to the 4400 to 4000 band range can be considered normal. In this context, carefully following the bottoms and peaks of the upward trend will be a positive breakthrough in the investor wing.
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