Cryptocurrencies Face Price Correction Linked To COVID-19 Spike
The economic instability the dreaded Covid-19 brought is far from over. After months of analysts suggesting that a second wave of the virus hitting the public was possible, Britain investors face a severe last minute sell-off. Investors believe that the virus could cause an unexpected price correction, which would lead to a decrease in asset value.
Outside the digital asset industry, regular industries are constantly dropping stock values due to the economic downturn most nations face because of the diseases. Bitcoin’s price experienced a fall from its previous $23,500 – $24,000, possibly due to assets sales, to mitigate losses from an expected price correction in the digital asset.
How sell-off affected crypto prices
Naturally, cryptocurrencies are volatile, but when faced with unwanted problems like the virus’ effect on the economy and rapid asset decision, it further increases instability. The Bitcoin price had dropped to inched below $22,000 at some point, but struggling to return to its former position.
Since a premium coin like Bitcoin could face an inevitable correction, other currencies are also feeling the sell-offs. Bitcoin Cash, Ethereum, LINK, and Litecoin are some of the altcoins that faced corrections alongside Bitcoin. After ETH exceeded the $600 range slightly, it soon returned to its previous position in a similar path.
XRP’s legal issues contributed to its fall in price some time ago, but now it has stabilized within the $0.5 range. Bitcoin has its fair share of fluctuating prices after the fall of its all-new high. Its fall led to a further decline in value, from inches from $22,500 to then dropped below $22,000 slightly.
After its last decline, it now recovered unexpectedly. The increase was rapid as the price presently stands at $22,500 and above. With new, a new price line is a new resistance point, with a present resistance point of 23,500 to return to $24,000.
How price correction made Ethereum unstable
After the crypto hit the $620, it dropped slightly, but still within the $600 range. The hit made the price drop even further below the $600 zone, but it soon recovered after. A great possibility that the price is too close to $600 might cause a further decline to the $580 price tag.
Bitcoin Cash saw some unexpected price changes falling by 10% and fell from its $350 -$330 tags to inches above the $300 price point. Analysis suggests that if more support levels are lost, prices could drop to $250-$290.
Litecoin might face some losses if it drops below the $100 support level. It could decline further to $95-$97 price ranges. XRP has bearish momentum drawing below its 0.5 support level, making the price drop to the $0.47 range. The closest support to that tag is $0.45, which could push the price back to its earlier $0.5.
Even other coins face a price crisis. Coins like UNI, OMG, and CRO share in the fate of larger coins. Bitcoin is also facing some negative corrections, which could either let it stabilize around the $23,700 range or fall to a little above $20,000.
