With the spread of the corona virus and panic in the financial markets, Bitcoin plummeted from $ 10,000 in February to $ 3,700 on Friday. The cryptocurrency recovered on the same day, hitting an intraday high of $ 5,995.
At the beginning of the weekend session, Bitcoin has now fallen by almost 4.5 percent. Bitcoin's 24/7 open market carries the risk of another slump - also because traders feel uncomfortable opening new long positions near $ 6,000.
Bitcoin has not yet bottomed out
Tone Vays, a top analyst who predicted the Bitcoin collapse months ago, believes it could drop below $ 5,000. He said that overall markets continue to have problems that could cause Bitcoin to hit new lows' in 2020.
Traders and investors should pay attention to the development of the coronavirus pandemic. Central banks are now pumping trillions of dollars into the banking system to protect their economy. But an upswing could take place if the number of newly infected people declines or if a vaccine is found.