Bitcoin is maintaining its upward trajectory as coronavirus-led risk aversion hits the traditional markets.
Thetop cryptocurrency by market value crossed the 200-day moving average at $9,000during Tuesday's Asian trading hours and rose to a high of $9,150, pushing thecumulative month-to-date gains to over 25 percent.
At press time, bitcoin is changing hands at $9,061. Despite the minor pullback from the morning's high, the cryptocurrency is still reporting a 4.8 percent gain on a 24-hour basis, and is up roughly $700 from lows near $8,250 observed over the weekend, according to CoinDesk's Bitcoin Price Index.
While bitcoin has kicked off the week on a positive note, stock markets across the globe are facing selling pressure.
Notably, the Dow Jones Industrial Average fell by more than 450 points on Monday with travel-related shares suffering sharp losses on fears the coronavirus outbreak in China could spread globally, hurting worldwide economic growth.
The virus, which first appeared in the Chinese city of Wuhan, is spreading fast. It has so far claimed more than 100 lives in China and the number of confirmed cases increased to 4,515 on Tuesday from 2,835 on Monday, according to the National Health Commission.
With bitcoin outperforming stocks amid the coronavirus scare, a few experts are convinced the cryptocurrency is drawing haven bids more so, as classic safe-haven asset gold has risen by just 0.65 percent so far this week.
The safe-haven argument, however, is not strong, according to prominent analysts like Alex Kruger. "Keep in mind that until Friday the narrative was 'Coronavirus pushing bitcoin lower'. It now is 'Coronavirus pushing bitcoin higher.' Some people try very hard to create narratives," he tweeted Tuesday.
Moreover, bitcoin picked up a strong bid below $7,000 at least two weeks before Chinese authorities placed Wuhan under quarantine on Jan. 23, sending equity markets into a tailspin, and has extended the rally over the last two days.
In fact, the virus outbreak could ultimately have a negative impact on crypto markets, Jason Wu, CEO and founder of non-custodial crypto lender DeFiner, told CoinDesk earlier this week.
Many Chinese crypto retailers tend to cash in on cryptocurrencies right before the Chinese New Year holiday and reinvest in the market in the next year, Wu said. With the virus outbreak, that money may not return to crypto markets, possibly leading to a price drop.
From a technical perspective, bitcoin is looking heavy and could suffer a minor pullback in the next 24 hours.
The relative strength index charted a bearish divergence (lower highs) earlier on Tuesday, signaling bullish exhaustion, and dived out of an ascending trendline to indicate an end to the rally from lows near $8,250.
The MACD histogram is printing deeper bars below the zero line, indicating a strengthening of downside momentum.
The current four-hour candle is flashing red, validating the buyer exhaustion signaled by the preceding inside bar candle, which occurs when the specific period's price action falls within the preceding period's trading range.
The RSI has also rolled over from the overbought (above-70) region, signaling scope for correction.
Both the hourly and four-hour charts are indicating the cryptocurrency could revisit the former resistance-turned-support at $8,793-$8,750 (horizontal lines on the four-hour chart).
A violation there would expose the next support at $8,530. If that level holds, bulls might breathe a sigh of relief and another attempt higher could be initiated targeting resistance at $9,000.
The odds of a pullback to $8,750 would weaken if the cryptocurrency finds acceptance above $9,150 during the U.S. trading hours. In that case, the recent high of $9,188 will likely be scaled.
It's worth noting that longer duration charts are aligned in favor of the bulls. So, pullbacks, if any, could be short-lived.
Disclosure:The author holds no digital assetsat the time of writing.
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
- Bitcoins Huge Surge This Week Could Be The Tip Of The Iceberg As Investors Recall 2017 Gold Rush - Forbes - April 5th, 2020
- The Price Of Gold And The Price Of Bitcoin - Forbes - April 5th, 2020
- Billionaire Optimistic on Bitcoin as a Flight to Safety - Cointelegraph - April 5th, 2020
- Bitcoins Hedging Performance in the Wake of the Coronavirus Outbreak - Cointelegraph - April 5th, 2020
- Bitcoin Flips Bullish But Heres Why BTC Price May Still Hit $3.9K - Cointelegraph - April 5th, 2020
- Bitcoin Showing Signs of Weakness But 100 SMA Can Trigger New Rally - newsBTC - April 5th, 2020
- Xapo moves $633 million Bitcoin for less than a pint of milk - Decrypt - April 5th, 2020
- Tidal Wave of Lawsuits Accuse Bitcoin (BTC) and Crypto Companies of Selling Unregistered Securities - The Daily Hodl - April 5th, 2020
- Here is why Bitcoin price is likely to be bullish - Cryptopolitan - April 5th, 2020
- Indians Own Bitcoin and Crypto Because Banks Are Incompetent: Survey - Coingape - April 5th, 2020
- Bitcoin (BTC) Is Doing Just Fine Compared to S&P 500 During COVID-19 Crisis. This Chart Shows Why - U.Today - April 5th, 2020
- Just One Major Cryptocurrency Is Outperforming Bitcoin Right Now And Its Climbing Fast - Forbes - April 3rd, 2020
- Ether-Bitcoin Price Volatility Spread Hits 4-Month Low - CoinDesk - April 3rd, 2020
- Bitcoin on the brink of major bullish breakout - Yahoo Finance - April 3rd, 2020
- $8.5K Then $3K This Traders Bitcoin Price Call Is Playing Out - Cointelegraph - April 3rd, 2020
- Bitcoin.com Fires 50% of Staff Ahead of BCH Halving - Bitcoinist - April 3rd, 2020
- Pressure Test That Signaled Bitcoin (BTC) Bull Run Flashing As Ethereum and XRP Hit Crucial Lines of Resistance - The Daily Hodl - April 3rd, 2020
- Bitcoin (BTC) Price Targets $7,600 with Chance to Hit $8,900 Later - U.Today - April 3rd, 2020
- How COVID-19 Is Changing Narratives From Bitcoin to DeFi - CoinDesk - April 3rd, 2020
- Bitcoin's Safe-Haven Status Is Not Dead as Correlation to Gold Reaches New Highs: Report - U.Today - April 3rd, 2020
- Darknet and Bitcoin: Ominous trends affected by COVID-19? - Cryptopolitan - April 3rd, 2020
- Cryptocurrencies advance as Bitcoin was rejected at the $7.200 level - FXStreet - April 3rd, 2020
- CoinShares Strategist Meltem Demirors Issues Warning About Digital Dollar Its Everything Bitcoin Is Not - The Daily Hodl - April 3rd, 2020
- Bitcoin Climbs More Than 15% As Investors Flock To Safety - Forbes - April 2nd, 2020
- Bitcoin Briefly Tops $7K as Traders Say Worst of 2020 Selloff May Have Passed - CoinDesk - April 2nd, 2020
- Heres Why Bitcoin Price Just Spiked to $7.3K, Liquidating $90M - Cointelegraph - April 2nd, 2020
- Crypto Traders See Bitcoin (But Not Ethereum) Surging To All-Time Highs In 2020Heres Why - Forbes - April 2nd, 2020
- Bitcoin Closes Q1 With Historic Darth Maul Candle: Heres What it Means - newsBTC - April 2nd, 2020
- Could Coronavirus Kill the Bitcoin Mining Industry? - Finance Magnates - April 2nd, 2020
- Bitcoin Price Analysis: BTC Surges 9% And Will Set Up A Strong Rally IF We Can Close Above This Pattern - Coingape - April 2nd, 2020
- Revolut brings Bitcoin to all of its 7 million users - Decrypt - April 2nd, 2020
- Bitcoin Stuck In Bearish Trend As The New Month Begins - Forbes - April 1st, 2020
- Bitcoin Takes Tumble, Traders Fret Correlation and Next Month's Halving - CoinDesk - April 1st, 2020
- A Bitcoin Bastion In The Wild West - Forbes - April 1st, 2020
- Bitcoin Bros Are Directing Their Powerful Computers Toward Coronavirus COVID-19 Research - Forbes - April 1st, 2020
- Massive $633 Million Bitcoin (BTC) Transaction Triggers Crypto Whale Alert - The Daily Hodl - April 1st, 2020
- Cryptocurrencies price prediction: Bitcoin, Ethereum & Litecoin - American Wrap - 01 April - FXStreet - April 1st, 2020
- Can Bitcoin Survive the Climate Change Revolution? - CoinDesk - April 1st, 2020
- Bitcoin Follows Stock Markets Higher; How Long Will They Move in Lockstep? - CoinDesk - April 1st, 2020
- Bitcoins on the Move Is BTC Price Inversely Correlated to Mempool Size? - Cointelegraph - April 1st, 2020
- Here's how much bitcoin beat the Dow and S&P 500 in the first quarter - CNBC - April 1st, 2020
- Bitcoin Holding Crucial Support: Heres What Could Propel it to $7K - newsBTC - April 1st, 2020
- Is Now the Time to Invest in Bitcoin? - Cointelegraph - April 1st, 2020
- This Crisis Is Good For Bitcoin, But Beware of Recession - Luno CEO - Cryptonews - April 1st, 2020
- Top Three Coins Price Prediction: Bitcoin bears take control while Ethereum and Ripple still remains in the green - FXStreet - April 1st, 2020
- Bitcoin Ascends on Twitter While Major Altcoins Hit Multi-Year Lows - Cointelegraph - March 27th, 2020
- Bitcoin Is a Safe Haven for a Worse Storm Than This - CoinDesk - March 27th, 2020
- Japanese Investors Rushed To Buy The Dip After Bitcoin Bloodbath - Cointelegraph - March 27th, 2020
- Bitcoin community responds to FDIC warning on bank run - Decrypt - March 27th, 2020
- Binance Reveals Visa Debit Card in Push to Bring Bitcoin (BTC) and Crypto Payments Worldwide - The Daily Hodl - March 27th, 2020
- Just Like Bitcoin Before It, Cardano Is Banned From Wikipedia - Cointelegraph - March 27th, 2020
- How would a US recession affect Bitcoin? - Decrypt - March 27th, 2020
- Are Miners Waiting for Bitcoin to Hit Breakeven Point? - Cryptonews - March 27th, 2020
- Feds Unlimited QE Places Spotlight on Bitcoin Store-of-Value Narrative - Cointelegraph - March 27th, 2020
- Vitalik Proposes Solution to 'Embarrassing' Lack of BitcoinEthereum Bridge - Cointelegraph - March 27th, 2020
- Bitcoin Will "Come Of Age" During This Crisis: Top Investor Explains Why - Blockonomi - March 27th, 2020
- Algorithmic Crypto Art Changes Appearance to Reflect Bitcoin Volatility - Cointelegraph - March 27th, 2020
- Heres How To Predict Major Moves In The Price Of Bitcoin - Forbes - March 23rd, 2020
- Bitcoin Just Reversed and Its Vulnerable To A Drop Towards $5,200 - newsBTC - March 23rd, 2020
- Did BTC Miners Crash Bitcoin Price With 51 Days Before the Halving? - Cointelegraph - March 23rd, 2020
- Bitcoin Price Analysis: Bitcoin Steady Above $6,000, But Is It The Calm Before The Storm? - CryptoPotato - March 23rd, 2020
- Bitcoin Highly Correlated With HYG And IWM ETFs As Contagion Effect From Coronavirus Epidemic Spreads Across All Asset Classes - Forbes - March 23rd, 2020
- Top 3 Price Prediction Bitcoin, Ethereum, Ripple: A sea of red returns as weekend love disappears - FXStreet - March 23rd, 2020
- Tezos Foundation Offloaded Millions of Dollars Worth of Bitcoin in 2019: Report - CoinDesk - CoinDesk - March 23rd, 2020
- The Internet May Be Next Victim of Coronavirus Pandemic Netflix, Google, Apple and Amazon React - Bitcoin News - March 23rd, 2020
- Bitcoin Price (BTCUSD) is Off to a Bullish Start; Can It Sustain Gains Above $5,900.00? - InvestingCube - March 23rd, 2020
- Bitcoin Price Analysis: BTC Might Drop Beneath $4,800 Again If It Breaks THIS Short Term Trend Line - Coingape - March 21st, 2020
- Top 3 Coins Price Prediction: Bitcoin, Ethereum and Ripple consolidate their price following as bulls and bears wrestle for control - Confluence... - March 21st, 2020
- A factor that predicted the Bitcoin crash in 2018 suggests bullish action is ahead - CryptoSlate - March 21st, 2020
- Bitcoin's Difficulty on Track for Historic Drop, but There Is Silver Lining - U.Today - March 21st, 2020
- Bitcoin ranked on top 100 greatest designs of all time - Decrypt - March 21st, 2020
- The Puell Multiple Is Turning Bullish on Bitcoin - CoinDesk - Coindesk - March 20th, 2020
- Bitcoin Is Fast Approaching $7,000Heres Why - Forbes - March 20th, 2020
- Contrary To Popular Belief, Bitcoin Isn't Consistently Correlated To Anything - Forbes - March 20th, 2020
- Bitcoins Magic Is Fading, And Thats A Good Thing - Forbes - March 20th, 2020
- Bitcoin Rally Leaves Stocks In The Dust - Forbes - March 20th, 2020
- Coronavirus is forcing fans of Bitcoin to realize its not a safe haven after all - MIT Technology Review - March 20th, 2020
- Bitcoin Is Back In Free Fall And Dropping FastHeres Why - Forbes - March 20th, 2020
- Top Analyst Explains Why Bitcoin Price is Up 78% amid Coronavirus Outbreak - newsBTC - March 20th, 2020
- A Treatise on Bitcoin and Privacy Part 2: Dont Be Misled by Red Herrings - Nasdaq - March 20th, 2020