- Bitcoin price breaks down to test $7,500 support, pulling the entire crypto market into losses.
- The WHO declared the deadly Coronavirus a global pandemic amid rising infections across the world.
Bitcoin price downward momentum has been unstoppable since the slide from levels above $9,000. Despite the mitigations put in place the buyers, selling activities continue to mount amid fears of the deadly Coronavirus. Bitcoin is trading above $7,600 after a shallow recovery from $7,572 (intraday low). The price teeters at $7,571 following 4.64% loss on the day. Bitcoin’s declines lag behind Ethereum’s 6.93% and Ripple’ $6.04%.
Coronavirus update
The World Health Organization (WHO) on Wednesday declared the Coronavirus a global pandemic. The virus continues to ravage through the European countries with Italy being the worst hit in the region. Cases of infections have topped 120,000 around the world with a death toll of more than 4,300. Many countries are resorting to flight cancellations to avoid ‘importing’ the virus into their jurisdictions in order to contain the deadly disease.
Bitcoin price technical picture
Bitcoin price is still falling as the Coronavirus spreads around the world. Its status as a hedging asset has been put to test but Bitcoin has failed to rise to the occasion. However, this could also mean that BTC is becoming a mainstream asset that responds to global events just like the traditional assets in the financial markets.
Looking at the hourly chart, BTC/USD is trading in the confines of a descending channel. The channel support has been instrumental in forcing rebounds in the ongoing downtrend. However, a recovery above $7,700 has failed, forcing Bitcoin down a painful trail under $7,600. If support at $7,500 fails, and the channel support caves in, BTC/USD could vulnerably breakdown to test $7,200 and $7,000 respectively.
The RSI and the MACD emphasize the selling pressure. Recovery has become unattainable and now the path of least resistance is downwards. Moreover, Bitcoin is yet to hit oversold levels even in the short term range, which means the sellers still have room to play.
BTC/USD 1-hour chart
-637195843373571532.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
SEC Chair Gensler hints at resignation amid lawsuit from 18 states accusing the regulator of unlawful overreach
In a filing on Thursday, 18 states, along with the DeFi Education Fund, issued a lawsuit against the Securities and Exchange Commission, alleging that the regulator's crackdown on the crypto industry has been unlawful and unconstitutional.
Bitcoin Price Forecast: BTC eyes $100K, what are the key factors to watch out for?
Bitcoin trades below $90K in the Asian session on Friday as investors realized nearly $8 billion in profits in the past two days. Despite the profit-taking, Bitwise CIO Matt Hougan suggested that BTC could be ready for the $100K level, fueled by increased stablecoin supply and potential government investment.
Ethereum Price Forecast: ETH could rally to $4,522 despite mixed on-chain flows among investors
Ethereum is down over 1% on Thursday following record net inflows across ETH exchange-traded funds in the past six days. Despite the bullish market outlook, $300 million worth of unstaked ETH could hit the market and cause downward pressure on prices.
Crypto Today: Bhutan sells $33M BTC, McDonald’s launches NFTs, PEPE, SUI emerge top gainers
The aggregate cryptocurrency market capitalization shrank by 1.45% on November 14, reflecting a $42.6 billion dip. In the last 24 hours, 170,878 traders were liquidated to the tune of $485.13 million, per Coinglass data.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.