The last couple of days have not been in favor of the world’s leading digital asset Bitcoin as the coin has recorded losses in its price value. Due to these losses, bitcoin is far away from its psychological level of $10,000 even its price value has decreased down from the $9k level.
On 28th February, the value of the leading crypto asset came down to $8.5k which was its lowest level in a month. However, on Friday 29th February, Bitcoin recorded its five-week low as the trading pair BTC/USD touched $8,455 on Friday according to the data from Coin360 and Cointelegraph Markets. This underlined the continued selling pressure on the markets.
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However, the leading asset managed to cross the $8600 mark and at the time of writing, the price value of the coin is standing at $8,675.30 USD with a change rate of -2.50% in 24 hours.
Bitcoin could not hold around $8.8K
Some analysts were hoping that Bitcoin would defend its 200-day moving average at around the $8.8k level. But the leading digital coin could not hold itself around this mark and failed to resist its 200-DMA. According to Cointelegraph markets analyst filbfilb, Bitcoin has instead opened up the potential for a significant issue. Bitcoin drop on Thursday is being considered as the biggest one-day drop in history.
Coronavirus epidemic has also its effect on the crypto market. The epidemic is now more rapidly spreading outside China than inside the country.
However, traders believe that the Federal Reserve might decrease interest rates this year in order to expand its economic growth.
Bitcoin touches the S2F model price right before halving
As the leading digital asset is trading around $8.6k mark, it means that the performance of Bitcoin is still in accordance with technical expectations. $8,606 is an average price for BTC/USD according to the famous price forecasting model Stock-to-flow (S2F).
Regarding this, a Twitter-based analyst CryptoKea said that Bitcoin always follows the S2F model price before every halving event as the analyst says: “A few weeks before every halving, #Bitcoin touched the #s2f model price. This time it is no different.”