Global cryptocurrency markets have been trending up the last week. This comes during a time where traditional markets have been selling off during the Coronavirus outbreak. The stock market never likes uncertainties and that’s exactly what it’s witnessed the last week. With the uncertainties, analyst have also been downgrading numerous stocks ( mostly travel related ) which is putting a toll on the overall market sentiment. Global cryptocurrency markets have added around $10 billion in value the last week.

Bitcoin Price Rallying During Stock Sell-Offs  

Bitcoin on the other hand has followed its historical trend of performing inversely to the S&P500 during market turmoil. If we take a look at the chart below, we can see Bitcoin price action vs SPX ( S&P500) price action. As traditional markets started sharp sell-offs, Bitcoin started displaying “global hedge behavior” that many people were talking about in 2019 during the initial trade wars between the United States and China. It’s important to understand that Bitcoin doesn’t always act inversely to traditional markets, but it has a pretty strong track record of doing so the last 10+ years during global uncertainties.

Bitcoin Price Setting Up For A Rally?

As we mentioned in a previous bitcoin analysis, we were eyeing the $9,200 levels ever since BTC price surpassed $8,200 levels from a technical standpoint. Bitcoin is currently hovering around $9,000 at the time of this article, and the charts are getting quite interesting.

If we take a look at the chart below, the two bullish indicators right now appear to be the..

  • $9,100 resistance level being surpassed
  • Bitcoin price potentially inching above the 200 day moving average 

Both are strong indicators that can be used to build the bull case right now. With the current formation, it wouldn’t be surprising to see Bitcoin test the $9,800 levels in the short term. If you look at the 200 day moving average, theres only a couple scenarios the last year where bitcoin price has rallied above it. In both scenarios, bitcoin has experienced upward momentum. If the Coronavirus uncertainties die down in the traditional markets, you will most likely see the S&P rally pretty hard which could cause bitcoin to cool off in the short-term, but it still has a very solid formation to continue bull mode.

Image Source: Pixabay

Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice. This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. All content published by Visionary Financial is not an endorsement whatsoever. Visionary Financial was not compensated to submit this article Please also visit our Privacy policy; disclaimer; and terms and conditions page for further information.