Bitcoin Cautious as Investors Dump US Stocks on Coronavirus Panic

Free $100 Forex No-Deposit Bonus

Bitcoin was holding its gains this Friday as investors dumped equities amid escalating Coronavirus cases in the US.

The top cryptocurrency climbed a modest 0.15 percent to circa $9,084 as of 1400 New York time but remained somewhat cautious with extending its uptrend. Traders looked too afraid to enter any new upside positions near the $9,000-level, indicating that bitcoin could be due for a bearish retracement.

Full-time trade Michaël van de Poppe said in a tweet today bitcoin could plunge to retest support at $8,925-8,950 area. The floor, he added, could provide bulls an ideal place to enter new long positions towards the “main target zone” of $9,300-9,400. His medium-term upside targets, at the same time, were above $9,500.

“Losing $8,950 and I’ll aim $8,400/$8,600 again,” Poppe stated.

Stock Market Plunge

Crypto bulls were also excited about a rather underperforming global stock market. All three major US indices fell by wider margins on Friday, with the Dow Jones Industrial Average falling 1.8 percent during the New York afternoon trading.

The plunge sent investors to the safety of low-risk bonds. As a result, the yield on the benchmark 10-year Treasury Note fell to 0.7 percent for the first time this Friday.

“Bitcoin is so much more stable than the US Stock Market,” said Christopher Greene, the creator of AMTV. “[The cryptocurrency] at $9k today unchanged while US Stocks collapsing again -500pts. This is why I’ve always said US Stocks are rat poison and expect to lose everything.”

Part of bitcoin’s stability above $9,000 also came from a string of regulatory approvals this week. It started with Germany approving the cryptocurrency as a financial instrument, followed by India’s quashing of a crypto ban after two years. And just today, a French court decided to compare bitcoin to money.

The announcements led the cryptocurrency a much-needed legitimacy, especially in times when investors are looking for reliable insurance assets. While that does not say it rose to and above $9,000 because of favorable regulatory climate, but the possibility of it happening surely escalated.

Bitcoin Analysis

Heading into the Asian session Saturday, we expect bitcoin to test $9,000 as its interim support. A pullback could lead the cryptocurrency up towards $9,170-9,200 with a near-term upside target lingering near $9,265. Moreover, a breakout would have traders test $9,500 as the primary long target.

bitcoin, cryptocurrency, crypto

BTC/USD  maintained its weekly gains on Friday | Source: TradingView.com, Coinbase

Conversely, slipping below $9,000-support could send bitcoin further down towards the oranged 50-hourly moving average.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.