Bitcoin is likely to benefit from a sharp decline in the Asian stock market due to coronavirus, according to analysts.
Bitcoin price increased when the stock market fluctuated sharply
BTC made a quick profit on February 3, rising to a high of $ 9,580 overnight after a slight correction to the $ 9,300 area.
Meanwhile, the Shanghai Composite Index (SSE), down nearly 8%, due to concerns about the economic impact of coronavirus continues to soar.
The authorities have been criticizing the handling of the outbreak, with China's central bank pump an enormous amount of 1.2 trillion yuan (US $ 170.9 billion) of capital enters the local market.
Analysts are having mixed opinions about how Coronavirus helps / hinders Bitcoin price action.
As for Tone Vays, while Bitcoin certainly made a profit from economic instability, any serious escalation could have the opposite effect.
While others were more optimistic.
“As confidence in the global organization and market continues to worsen, we will see volatile digital assets like Bitcoin explode in value,” Jehan Chu, partner manager of blockchain investment firm Kenetic Capital, told Bloomberg on Monday.
Just before recent events, Bitcoin has shown bullish signals – technical fundamentals continue to set new records and institutional interest in products such as futures. Bitcoin hybrids are more present than ever.
This week, another factor that has attracted attention is Bitcoin's MA 50 and 100-day moving averages that form a bullish cross on the 1-hour chart – a bullish sign for investors.
Despite not being able to consolidate above $ 9,600, Bitcoin seems to be predicted for huge profits this year. According to trader Anondran, King of Crypto is about to form a golden cross on the weekly chart for the first time since April 2019.
Wow. Bitcoin is about to print a Weekly Golden Cross next week, after 10 months.
If Bitcoin were to do the same $ 4000 to $ 14000 rally this time its going straight to $ 30000.
I'm so hyped for this! pic.twitter.com/UIS0wpQIyb
– Anondran (@AnondranCrypto) February 3, 2020
The Golden cross is a bullish market signal that appears on the chart when the 50 EMA daily crosses the 200 EMA daily, thus confirming an ongoing trend change.
Such cases are rare, which explains why traders should be excited about the upcoming crossover. Last time BTC formed a golden cross on its weekly chart, its price soared 158% and reached its highest level in 2019 of $ 13,888.
According to Anondran, BTC could rise to $ 30,000 if it experienced a similar rally after the upcoming golden cross.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Crypto loans are only 5.9% of the annual interest rate – you can use the money effectively without selling coins. Earn up to 8% interest per year with stablecoin, USD, EUR & GBP with insurance up to 100 million. Come on, get started now! →Read more :