The second wave of coronavirus and its impact on cryptocurrency prices

It seemed like everything was over this summer, and the COVID-19 epidemic was beginning to subside, but it's now clear that this impression was deceptive.

With the onset of autumn, the epidemiological situation began to deteriorate rapidly, and governments began introducing new restrictions.

This is bound to impact the economy and global markets, including the cryptocurrency market, which has only just recovered from the first wave of the coronavirus.

Most investors are wondering how this new situation will affect the Bitcoin price and the value of other virtual currencies. Should they sell their existing assets or wait for a more favorable moment?

Let's consider the state of affairs using the beloved Bitcoin as an example, as its price is the best indicator of the cryptocurrency market.

After a dramatic fall in the spring, by mid-summer the price had once again surpassed the $10,000 mark and even risen higher.

  In August, Bitcoin moved in a price corridor between $11,000 and $12,000. In September, support and resistance levels changed and the corridor formed within the boundaries of $10,000 to $11,000:

In other words, a gradual downward trend is already emerging, and the pandemic hasn't yet fully entered its second phase.

If we follow the rule that most investors remember history well, including the fact that the previous wave of coronavirus more than halved its price, then we can expect an increase in the number of sell trades.

This will, accordingly, lead to a further decline in the Bitcoin price, expected to stop this time around $5,000.

Now is the best time to sell your cryptocurrency and wait for it to fall to another low before buying again.

The downward trend will accelerate after a breakout of $10,000, which has always served as a psychological barrier beyond which many sell orders are concentrated.

Therefore, at this point, there are two options: immediately open a sell trade or set a sell stop order below the 9800 level on the trading platform.

Related articles:

Cryptocurrency trading on the exchange - https://time-forex.com/kriptovaluty/treyding-kriptovaluty
Important points of Bitcoin trading - https://time-forex.com/kriptovaluty/moment-treyding