Bitcoin has been performing well, and it has consistently climbed its way to the top among cryptocurrencies over the past 12 years. Of course, Bitcoin had a head start as it was the first cryptocurrency to launch, but Bitcoin is still an investment option amongst many others.
A good investor is always looking to make a profit, and they are looking at the trends to see if it is worth investing in a product. If changes in society or the investment make it more desirable, then the demand for that investment will most likely go up, and if supply does not shift, so will the price of the product over time.
A good investor will look into the times and work out if the price will go up but buy the asset when it is still nice and low to sell it later when the price is up. The current climate that is making investors precarious about their choices is Covid-19.
The pandemic has affected investments like the housing market because people default on their mortgages because they are losing their jobs. Investments that require you to go into the place have been impacted because of the Government lockdowns and the different tier lockdown conditions.
In the UK they are three tiers. Tier 1 limits gatherings to groups of 6 indoors or outdoors, meaning that restaurants and cafes can no longer benefit from bookings larger than six.
Tier 2 means you cannot socialize with anyone you do not live with indoors but are permitted to meet up in groups of six outdoors. Tier 2 affects pubs, clubs, bars, and any party venue such as a skating rink or bowling.
Tier 3 means you cannot socialize with anyone you do not live with.
The tiers have meant that particular investments are just not wise. Despite the pandemic, Bitcoin has continued to rise.
By the 31st of December, the Wuhan, China Government confirmed that they were dealing with dozens of Covid cases.
Looking at the graph, it is clear that Bitcoin was consistently climbing up with bullish momentum from December up until February. The bullish movement is indicated by the candle’s continued acceleration upwards over time.
The bearish trend maybe because on the 11th of March, the World Health Organisation (WHO) declared a pandemic. In March, the Moving Average Convergence Divergence (MACD) was dense and red to indicate bearish action.
Many miners are based in China, so investors might have been unsure about how Covid-19 would affect the coin’s performance.
Miners can work anywhere, so unless they fall sick, they are unlikely to fall prey to the consequences of lockdown. Bitcoin is not affected by much it is purely driven by people’s individual experiences of the coin and how they spread the word.
The graph shows us that despite the pandemic, Bitcoin has been able to keep increasing over the year. Overall, there has been bullish momentum because of the mostly green MACD and how the candles are mainly operating in the Bolinger Bands’ higher expectation area.
At the time of writing, 12:00 GMT, BTC was an incredible $19,157. The pandemic has exposed how Bitcoin is one of the most reliable investments because it is not affected by much. Despite the fact, the world has been hit by a global pandemic, Bitcoins price has managed to soar to new heights.