Bitcoin (BTC) joined equities in taking a beating over the past few days as the coronavirus outbreak became a global problem. The latest developments, namely the widespread nature of infections, have pushed market participants to shed risky investments while gold has been appreciating.
The recent Bitcoin slump has come as a major blow to the crypto market, which was expecting a rally since the leading digital currency was attempting to tackle the key $10,000 price level. However, since February 24, 2020, BTC continued to drop to new lows daily, falling from $10,000 to under $8,500.
While Bitcoin fell through several supports on its way down, the 150-day moving average is holding it up for now, at just under $8,400. According to candle patterns and other technical indicators, we may see a bounce back from the 150-day moving average support, as there is strong buying activity in that range.
However, the market needs some positive catalysts, either in the shape of news surrounding the virus outbreak or regulatory developments, in order for Bitcoin to try and breakthrough new resistance levels and reach $10,000 once again.
With Bitcoin under pressure, other top 20 coins have also been losing value over the past 24 hours, with the biggest losses recorded by Litecoin, BitcoinSV, Cardano, and Ethereum Classic.
Even though the bears are dominant at the moment, many crypto enthusiasts are looking forward to the upcoming Bitcoin halving as a major event, capable of pushing prices higher and giving the market fuel for a resurgence.
What remains to be seen, however, is how severe the coronavirus outbreak is, and how it impacts the global economy in the coming months, particularly countries largely dependent on China for commerce and trade.
