Bitcoin drops below the $9,000 mark as cryptocurrencies and assets market-wide suffer from Coronavirus fears.
Bitcoin drops in the wake of Coronavirus fears. The leading cryptocurrency fell to a low of $8,571 at the time of writing. Stocks and cryptocurrencies are suffering as Coronavirus cases are cropping up across the globe.
After the $10k rally in late January, Bitcoin now stands to lose all of its gains. However, BTC is not the only cryptocurrency to suffer this bearish trend. Litecoin, Ether, Cardano, and a host of other top altcoins are all seeing downturns. This brings into question the long-held idea that crypto is a place to hedge against volatility in other markets.
Ether dropped 10.15% to trade at $215, a stunning reversal from $286 less than two weeks ago. Litecoin pulled back 13.21%, EOS 10.37% and Ethereum Classic lost 13.47%.
Despite all of this, some say that Bitcoin stands to make a comeback in the near future.
Bitcoin could stage a comeback.
The next support level is near the $8,300 level and the 100-day simple moving average. Because of this, Bitcoin is likely to find a strong buying interest at this point, and it could bounce back sharply. However, if the bulls fail to defend the $8,000 line, there is a strong chance of a decline towards the $7,000 and $6,800 levels.
On the way up, an initial resistance is near the $9,000 level. A successful close above the $9,000 level is likely to set the pace for a fresh increase in the coming days.
All of this comes as trends in the stock market tumble. New cases of Coronavirus appearing throughout Asia and the Middle East, and the United States now on alert, investors are taking cautions. In addition, new Center for Disease Control cautions are not helping.
Futures in the Dow Jones, S&P 500 and Nasdaq all dropped 1.32%, 1.33% and 1.31%, respectively. Investors increasingly are becoming more and more concerned about the economic impact of the Coronavirus. The virus is now present on all continents, with the exception of Antarctica.