Bitcoin
$ 35,649
Ethereum
$ 2,376.1
Litecoin
$ 161.90

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
Bitcoin35,649 0.67 % 4.32 % 0.29 %
Ethereum2,376.1 0.73 % 1.05 % 9.47 %
Tether1.000 0.12 % 0.27 % 0.10 %
Binance Coin344.48 0.61 % 0.00 % 11.29 %
Cardano1.480 0.85 % 3.40 % 10.96 %
Dogecoin0.3129 0.79 % 1.50 % 16.08 %
XRP0.8335 0.75 % 1.08 % 9.73 %
USD Coin1.000 0.18 % 0.22 % 0.09 %
Polkadot20.65 1.83 % 1.35 % 13.31 %
Uniswap21.32 1.39 % 1.73 % 16.81 %

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