The 2020 year started with two Major news from two major countries – USA and CHINA. In first week of the new decade, USA surprised the world with serial bombing on IRAN, and developed a war tension between both two countries. A Few days later, China released information about CoronaVirus when few people got infected with this virus in Wuhan,China.
Global Stock and Equities Market Plunged in response to both news – USA-IRAN WAR and Coronavirus. But Gold made its mark again as a safe heaven and Gold’s price made 9- years high at 1680$.
Surprisingly, Bitcoin also responded well during USA-IRAN war Tension and performed pretty well by recording 52% growth in 6 weeks. Bitcoin was considered as second safe heaven after gold.
The perception about Bitcoin has been changed now, Gold remains as safe heaven during coronavirus pandemic situations. But Bitcoin is now struggling to maintain its price gain, Bitcoin price had dropped by 30% in last two weeks, and continuously facing selling pressure.
Now Let’s look at Technicals to discuss how low Bitcoin can go?
- Bitcoin has formed as possible bearish pattern – Desending triangle on weekly chart.
- Bitcoin is currently holding support at 100MA, which is at 7300$.
- MACD is currently doing a bearish crossover.
- The current week close is very important for bitcoin to decide on further price action, As of now Bitcoin is trading below Mining break-even cost which is at ~ 7750$.
- If the current week close below 7200$, than there is more than 60% chances for bitcoin to make new lows and possibly retest 200MA support at 5500$.
- If the current week close above 7700$, than there is more than 60% chances for bitcoin to reach 9000$ again.
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