Bitcoin price tumble to two month lows as the sell-off in risky assets accelerate today amid the increasing coronavirus outbreak worries. Today the sell-off has been across the board and even gold is feeling the pressure. Bitcoin is also a victim of the sell-off as more and more investors are holding positions in cryptocurrencies as the 11 years bull market and excess liquidity has shift some mainstream investors to alternative assets such as digital assets.
That kind of investors mainly invest according to sentiment, when there is a bullish sentiment they buy aggressively any assets while when the momentum turns negative they proceed with mass liquidations of their portfolio.
On other reason for the sell-off in cryptocurrencies might be some forced liquidations amid margins calls in equities. Bitcoin is still positive in 2020, and investors liquidate profitable positions.
Bitcoin Price Analysis
Bitcoin price is 7.35% lower today at $7349 as the selling pressure continues for the sixth day in a row amid a global rout in risky assets. BTCUSD is keeping 2.93% gains in 2020 but has lost over 27% the last month. As we have discused yesterday the Bitcoin price is vulnerable below $8420 and that certaintly is the story today. The technical picture is clearly bearish now and only a rebound above the 100-day moving average at 8427 might cancel the bearish momentum.
On the downside, first support for bitcoin (BTCUSD) will be met at $7303 the daily low. If the bitcoin breaks below, the next support stands at $6852 the low from January 3rd trading session. If the bearish momentum persists the next support stands at $6436 the low from December 18, 2019.
On the other side, the resistance for BTCUSD seen at $7969 the daily high. More offers will be met at $8167 the top from March 10th trading session. The next hurdle for the crypto pair stands at $8426 the 100-day moving average.