Bitcoin hits one-month low as stocks slide on virus scare
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Is bitcoin a pro-risk or anti-risk haven asset? The cryptocurrency rallied by 30 percent in January to register its best monthly performance since June 2019. What's worth noting is that buyers came in strong amid the U.S.-Iran tensions and the coronavirus outbreak in China. So at the end of the last month, most observers were convinced about bitcoin's strengthening appeal as a haven asset. Recently, however, it has traded more in line with classic risk assets. The Dow Jones Industrial Average plunged nearly 1,200 points on Thursday, confirming its worst four-day performance since the 2008 financial crisis. The risk has been aggressively sold this week on fears the coronavirus pandemic well lead to a marked slowdown in the global economy. Bitcoin has also suffered sharp losses this week. At press time, the cryptocurrency is trading at $8,600, representing 13 percent slide in a week-to-date basis. As a result, some analysts are questioning the thesis that the 11-year-old cryptocurrency might serve as a safe haven from financial panic. The billionaire investor Chamath Palihapitiya, who serves as chairman of the spaceflight company Virgin Galactic, told CNBC on Wednesday that bitcoin appears “completely uncorrelated” with other asset categories like stocks, bonds and emerging markets. Buying bitcoin on coronavirus scare and the resulting slide in Dow is an idiotic strategy, Palihapitiya said. |
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Hits One-Month Low BTC: Price: $8,650 | Market cap: $158 billion | 24-Hr Volume: $49 billion Trend: Bearish Bitcoin fell to one-month lows below $8,450 early Friday, erasing 50 percent of the rally from the December low of $6,452 to the recent high of $10,500. At press time, the cryptocurrency is changing hands near $8,650. The minor bounce may be extended further toward $9,000 as indicators on the 4-hour and hourly charts are reporting oversold conditions. The immediate bearish case would weaken if prices print a UTC close above $8,975 on Friday, confirming the seller exhaustion signaled by Thursday's doji candle. That would open the doors for the former support-turned-hurdle at $9,300. However, if the ongoing bounce fails to take out $8,975 or fizzles out at current level, a fresh slide toward $8,213 (Jan. 24 low) could be seen, as the daily chart indicators are biased bearish. The 14-day relative strength index is hovering below 50 and the MACD histogram is printing deeper bars below zero. The three-day chart MACD histogram has also crossed below zero, confirming a bearish shift in the momentum and validating the preceding big red marubozu candle. A red marubozu candle comprises a big body and small or no shadows. The candle indicates sellers were in control from the session's open to its close and is reflective of strong bearish sentiment. Read Analysis |
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| | Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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