Bitcoin Price Plunges Amid Coronavirus Outbreak; Analyst Believes $2,000 Surge Coming Soon

Bitcoin collapsed from $7,300 to a low of $5,500 in the early hours of March 12 and proceeded to drop further to $3,858, a price that it hasn't seen since March 25, 2019.

Despite the volatility that the benchmark crypto is so used to, the selloff it had to endure was still the largest single-day plunge in its entire history. At 50%, the top crypto fell five times more than the Dow Jones Industrial Average, which was said to have been the catalyst for the crash in BTC.

The Dow, which lost 9.99% on Thursday, was just another day of declines amid the coronavirus scare that hampered not just the bluechip companies in the index, but the rest of stock markets around the globe. Virus fears that trigger the massive selling were carried over to Bitcoin and the rest of the crypto markets.

BTC only found relief before the day concluded by recovering 16%. But the flagship crypto is now down 43% this month. By Sunday evening, Bitcoin posted a 1-hour rally that boosted its price 14% but it failed to breach $6,000. There was heavy selling pressure around that region and caused BTC tumble to its current trading price of $4,841.

As Bitcoin failed to hold above $5,900, it also closed below the 200-week moving average for the first time. Analyst PlanB was the first one to take notice of how significant trading below that indicator and that the $8,200 should hold otherwise it could spell trouble for BTC.

PlanB tweeted back in February, "$8.2k bottom still stands. It would really be unprecedented if it breaks, never happened before. Note it has nothing to do with s2f."

Another analyst DonAlt believes that a $2,000 plus surge is on the horizon. DonAlt explained how he believes BTC will move and how he will position himself for an opportunity to take a trade.

"Re-hedged my spot, I'm flat again. Made almost 20% profit on the position, won't complain. This could both pump $2000 or dump $2000 at this point and I'm not willing to wait in position to see which it'll be. I'll look for entries around the monthly close instead," DonAlt tweeted.

Recovering from its current depressed levels is also what Tone Vays and Willy Woo predicted back in November, and their prediction of BTC dropping to its level near $4,500 so far is spot on.