An analysis of the charts on Bitcoin could indicate that the turning point is near

Bitcoin has been on a death spiral for the past two weeks as concerns over COVID-19 continue to remain very high.

The leading cryptocurrency by market capitalization saw its price drop by more than 20% in just two weeks. But perhaps there is a sign of indecision that could suggest that a possible decisive event and a much needed reversal are close.

Concerns about coronavirus continue to reduce the price of bitcoin, but is the trend reversing?

Bitcoin is a resource unlike any other and has had very little history in the financial market compared to stocks, gold and other assets. This cryptocurrency was created during the last recession and was designed with certain attributes to reduce the impact of future recessions in the event that the asset replaces the fiat currency.

But such a scenario is still far away – should it ever happen. For now, Bitcoin is a highly speculative asset, which makes it particularly susceptible to the emotional sentiment of investors.

And with the whole world in panic due to coronavirus, a strong sell-off is taking place on the stock exchange and in more risky activities such as cryptocurrencies. The stock market has seen its worst losses since the Great Recession. The fall of Bitcoin has reduced profits since the beginning of the year from a maximum share of 60% to just over 10%.

But a significant movement and a possible total reversal could be in sight, according to the daily closing of yesterday's candlestick on the Bitcoin price charts. An eminent cryptocurrency analyst has identified a trend in the bitcoin price curve that shows indecision and probably suggests a potential reversal.

Inside Bar and Spinning Top

In the candlestick chart earlier this week, it was seen that bitcoin had both "inside bar" and "spinning top" behavior. The first view represents the indecision that exists around Bitcoin and can indicate both a potential reversal and a linear continuation, depending on the type of line, its color and other factors.

But Bitcoin's candle was also a spinning top. The word top is not a reference to a spike in the price movement. The spinning top lines, which in Italian translates as "spinning top", are so called because of the similarity of their shape to the traditional children's toy.

According to Investopedia, "spinning tops can signal a significant change in trend". The description continues further, explaining that "a spinning top at the bottom of a downtrend could indicate that bears are losing control and bulls can take the reins."

Can the bulls finally take over the reins and reverse this chaos? Or will the bears continue to push Bitcoin to new historic lows in the coronavirus panic?