Bitcoin has been gaining bullish momentum above the major resistance at $8,800 and as a result it is currently above $9,000, to trade near two-month highs and appears to be targeting the next psychological support level of $9,500.
Bitcoin was one of the few assets to trend higher this week, as fears of the coronavirus outbreak sent global markets sharply lower, and crypto derivatives usually operate. XM well in times of global macroeconomic and geopolitical crises.
Today, Bitcoin recorded a gain of more than 4%, the largest daily rise since January 14, which pushed the total market capitalization of the currency to $ 162.5 billion, or 64.41% of the total cryptocurrency market cap, at its highest level of $ 241.2 billion in mid-December. / December 2017.
Corona virus affects the price of bitcoin
Concerns are now growing about the continued spread of the Corona virus and its negative impact on Chinese economic growth, and there are global signs that make investors be more cautious in the short term.
Bitcoin May Gain Bullish Momentum Thanks to “Economic Fear” of Repercussions Corona VirusThe cryptocurrency rose on Tuesday near its two-month high of around $9,150 it hit earlier this month.
Economic uncertainty and instability in global markets often lead to an increasingly bullish movement for bitcoin. Earlier this month, the crisis between the United States and Iran escalated and was just another geopolitical event that appeared to support the price of bitcoin.
Global markets are still under pressure with high reports of deaths in China due to the Corona virus, so far more than 100 dead and more than 2,000 injured, and European shares recorded their worst daily performance in four months yesterday, Monday, as well as Asian shares, which were hit by a sharp wave of The drop, and oil prices fell due to the possibility of lower demand, exacerbating sentiment, opportunities for supply chain disruption and possible bankruptcy.
On the other hand, economists at Goldman Sachs said that investors may remain out of the markets that are exposed to risk unless the Corona virus crisis stops, and this feeling leaves investors with the option of migrating part of their capital to safe havens such as gold, US Treasury bonds and the Japanese yen.
Bitcoin, a relatively new and baseless safe haven, is acting as a hedge asset against fears of the coronavirus outbreak.
It is likely that the currency will continue to climb past the $ 10,000 level, in the event that the epidemic turns into a national disaster with the potential for disruption of mining farms, disruption in the supply of mining equipment, restrictions on the flow of capital from the country and other dire consequences, it is possible to assume a decrease in Chinese demand for Bitcoin due to Long holidays until February 2nd.