Within the last couple of days, Bitcoin managed to shred most of its value in the blink of an eye. Investors witnessed their early HODLed cryptocurrency go all the way back down to $3,400, a price point which the coin had not touched since May 2019.
There are many theories as to why this price drop happened so quickly, most people pointing it towards the horrible anticipation of the Bitcoin blockchain halving. However, others believe that Bitcoin dropped due to its poor performance during the Coronavirus pandemic.
You see, everybody was expecting Bitcoin to take yet another safe haven role as it did during the Iran crisis, but since the coin failed to do so, in fact losing valuation as the pandemic spread, investors became less and less convinced in the asset’s relevancy during a global economic crisis.
However, a new market opened for scalp-trading companies and bots that are now flooded with requests from early customers.
Fast trading is now a thing again
Many BTC trading robot companies have reported that ever since Bitcoin first reached the $5,000 valuation during its fall, they started to receive much larger deposits from their previously passive customers. The bots were able to figure out the key resistance and support levels within Bitcoin’s bear market and helped HODLers at least save some of their investment during the crisis.
According to the Bitcoin Revolution scalping is now one of the best ways to wait out the storm that is happening in the crypto market, you can visit their website here. Robots are able to quickly identify the support levels as the coin continues to struggle against the bear market and find ideal places for even the smallest gains possible.
This was seconded by multiple guesses during BTC’s time at $3,400 as most robots decided to go along with their positions and bought up nearly all of their portfolio in BTC. Within just a couple of hours, BTC was back up to $5,300 thus helping investors save at least a little bit from their initial loss.
Other companies that specialize in simply trading for their customers with actual professionals have also started favoring the scalping strategy as Bitcoin continues to dance around the $5,000 mark. Identifying fail and success moments in the coin’s resistance levels is helping most companies to remain consistent with their gains for the customers, thus earning more and more as they go.
This issue with Bitcoin is sure to continue until the virus is dealt with or the halving actually occurs, but before then, it’s all about technical analysis and chart studies.