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Bitcoin falls as coronavirus woes deepen

bitcoin

Recently Bitcoin price dropped by 3.85%, losing $9. The abrupt downside move occurred after Bitcoin price rallied to $9,188, slightly above the $9,150 target many traders had suggested that the asset would reach before attempting a more decisive move toward increasing it.

Traders had anticipated a rejection at either $9,150 or $9,300 and at the time of writing the daily timeframe shows the price holding above the 20-MA of the Bollinger Band indicator at the $8,900 support cannot be reclaimed, it’s possible that the price could drop to the 200-day moving average at $8,695 and below this the frequently tested support at $8,400 where the 128-DMA resides.

 

According to a contributor, the possible cause of this decrease in bitcoin might be a result of the spread of coronavirus. The bearish scenario that could play out after the rejection at $9,150 would involve Bitcoin price failing to hold the 21-week moving average at $8,676.

“Losing that zone and we’ll see momentum and $8,200 retest downwards as the primary possible outcome,” Van de Poppe explained. However, he emphasizes that from a macro perspective, Bitcoin’s market structure is more inspiring than worrying and explains that:

“The market has seen a big rally in the first weeks of this year, a retracement and correction are only healthy for a sustainable continuation of the market.”

In the short-term, holding the zone between the 200-DMA and $8,900 support is crucial or a retest of the $8,400 support is likely. A weekly close below the 21-WMA ($8,676) would raise concern as it is a closely watched level by many traders.

But currently, Bitcoin is yet to make a lower low under the $8,400 support so a short phase of consolidation leading to another retest of the $9,150 resistance seems more likely than a drop below key support levels.

As Bitcoin price pulled back, the bulk of top-20 altcoins followed suit by pulling back 3% to 5%. Bitcoin Cash (BCH)back 4.16%, Litecoin (LTC) 2.67%, and Binance Coin (BNB) and Tron (TRX) dropped 5.03% to 5.78%, respectively.

The overall cryptocurrency market cap now stands at $256.6 billion and Bitcoin’s dominance rate is 63.3%.

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Crypto Stats


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin53,630 2.94 % 3.96 % 7.72 %
Ethereum1,859.6 2.26 % 6.92 % 18.42 %
Binance Coin241.18 1.81 % 0.49 % 5.86 %
Cardano1.140 2.12 % 2.43 % 12.43 %
Tether1.000 0.37 % 0.04 % 0.80 %
Polkadot36.21 4.00 % 2.48 % 1.80 %
XRP0.4818 1.90 % 2.28 % 7.57 %
Uniswap33.67 2.28 % 0.27 % 31.58 %
Chainlink32.03 1.70 % 10.61 % 15.64 %
Litecoin194.87 2.61 % 0.49 % 10.53 %