Bitcoin Pulls Back to Trim Weekly Gains Amid Coronavirus Fears

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The price of bitcoin on Friday pulled back off the current multi-week highs of about $9,590 to trade at $9,325 as fears of a global outbreak of coronavirus grew. Bitcoin has been on a bullish run since last week when it breached through the trendline resistance off a descending wedge.

The price of the pioneer cryptocurrency to the dollar trimmed the current weekly gains following Friday’s pullback. An attempt to recover off $9,300 late on did not materialize.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, the bitcoin price continues to trade at a time of rising uncertainty in the equities markets. Asian equities have plunged since coronavirus emerged. And now, the fear of a global outbreak appears to be affecting other markets. This could work in favor of bitcoin, which is viewed as a safe-haven by some investors. 

The latest developments in the global markets also appear to favor bitcoin. The UK exited the EU economic block, but the separation process kicks on now. There are still several unknowns to businesses about how the process could affect them. In the US it is an election year and this will affect stock markets overall. However, in the short-term equities could rally because of the current earnings season.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the price of bitcoin appears to be experiencing short-term bullish pressure in the market sentiment. Bitcoin has now rallied above the current 100-hour SMA, which is several pips above the 200-hour counterpart. The RSI indicator is pegged centrally, which means the bulls have room to target up top.

Therefore, the bulls will be targeting short-term profits at around $9,592 or higher at $9,832. On the other hand, the bears will hope that the pullback can extend downwards towards $9,176 or lower at $8,910.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the price of bitcoin appears to have recently bounced off a key support zone at $7,183. Since then the BTC/USD has been on a bullish run with a few pullbacks on the way. The price of the top cryptocurrency has now hit the overbought level of the RSI and surged above the 200-day SMA. 

Therefore, the bulls will be targeting long-term profits at around $10,974 or higher at $11,965. On the other hand, the bears will look to pounce for profits at around $7,996 or lower at $7,113.

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