Black Friday has begun on the cryptocurrency market. In the morning, the cryptocurrency market was gripped by panic caused by news of a new strain of coronavirus in South Africa. Stock markets of all countries reacted to this news with a drop. The crypto market also reacted with a drop. Major cryptocurrencies showed declines. Bitcoin price dropped below $55000, Ethereum fell below $4000.
However, news of a new strain of coronavirus only heightened the panic. Before that, the market received an insider tip about a possible ban on cryptocurrencies in India. These speculations have further increased the pressure on the cryptocurrency market.
As a result of today’s decline, the bulls have lost all hopes of an early recovery in the price of Bitcoin above $60000. At the time of publication, the BTC/USD pair is trading around $54300.
On the 4-hour chart, a downtrend continues to form, which limits the growth of the BTC/USD pair in the area of 58300. At the same time, at the bottom, the downtrend line provides support in the area of 53500 dollars. In order to stop the fall in the price of Bitcoin, the bulls need to keep the price above the level of 55000. However, the nearest resistance level is around 55900. If the bulls fail to keep Bitcoin above $55000, we will see a decline towards 53800. This is the October level.