The world’s leading digital currency has fallen below $9,300 after repeatedly trying to maintain above $10,000. Yesterday, prices dropped to $9,480 only for today to take another hit. At the time of writing, BTC/USD has been trading at $9,335 with 24 hours loss of 2.63%, while managing the daily trading volume of $950 million.
“Once it clears $10,300, I think price will steamroll 10,500 and get to $11,000 soon,” said economist and trader Alex Kruger yesterday when Bitcoin was looking good before doing bitcoin things.
As the price of the digital asset took a crash, Kruger said, “Area below 9K is very attractive for shorts to target and longs to open. Excessive leverage has been largely rinsed out. Bigger picture players are still looking at new year highs. I still expect higher prices prior to the halving and think once 10300 breaks should see 11K soon.”
However, he still doesn’t see this as the beginning of a bear trend.
Correlation between Bitcoin and gold negative
Bitcoin has taken the stock market route with this as the stock market plunges further. The Dow Jones Industrial Average dropped down over 900 points Wednesday and Treasury yields fell to fresh lows as coronavirus concerns grew.
The number of deaths in Italy has risen to 11, Switzerland and Croatia confirmed their first case of coronavirus, Bahrain reported six more cases – bringing the total number of 23, and Thailand, Spain Bahrain, and Austria have also confirmed new cases.
“The markets are pricing in the what ifs of the coronavirus, not necessarily exactly what is,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management Co.
Gold that hit 7-year high as investors fled into safe haven assets today saw correction after the sharp gains. Bitcoin meanwhile hasn’t been following yellow metal this time.
“Under a basic interpretation of the digital gold thesis, BTC’s price should have reacted positively. But instead it has declined,” noted Coin Metrics.
“In fact, the correlation between Bitcoin and gold measured over the past 30 days is currently negative, adding evidence to the thesis that BTC only reacts to certain types of events and not others.”
As Bitcoin price declines, the market sentiments have also turned into fear which trader Crypto Michael says is usually a “good signal.” Overall, a “healthy retracement and pullback from a 50% upwards move,” is a good sign but the current drop isn’t working in the flagship crypto’s favor.
“It starts to look weaker, as you can see. Dropping/closing below $9,350 and I’m going to aim $8,750 as next level for support,” added the trader.
Meanwhile, analyst Jacob Canfield says, “Bitcoin struggling to hold its bullish structure and testing the 4 hour 200EMA for the 3rd time. If this level fails, I’ll be looking to scalp a long from $9050-$9200 around the 61.8 fib and the 350EMA.”
“No trade zone for me at the moment after the bearish break down. High risk,” added the analyst.