BTC Price Blows Past $8,900 But Traders Say Nothing Abnormal, Bitcoin Still Ranging

By January 27, 2020 Bitcoin Business
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Crypto Twitter is expecting Bitcoin to pullback, but it isn’t stopping. The leading cryptocurrency today again defied market expectations and climbed past $8,900.

During the weekend, we started making our way upwards around $8,270 and today we jumped as high as $8,983.

Analyst and trader have been calling for Bitcoin to make a pullback around $8,800-$8,900 but with how strongly BTC is moving, we might be able to cross above $9,000.

“The longer we range above $8k, the more bullish,” is how investor and trader Josh Rager feels about BTC.

Trader Nik Patel is also of the opinion that a close above $8,800 would be “very bullish” for the leading cryptocurrency as it makes a “Strong close on the 1H, above prior swing-high but comfortably below next resistance, so no swing-failure yet to indicate downside.”

But it’s all about volume. A rising price with a rising volume is a bullish sign and as trader Scott Melker says a “true trend.”

Volume tells all. A true trend is identified when volume is rising. Blue arrows show volume and price in agreement. Red arrows show price action on descending volume. Price going down with volume = consolidation, not a bearish trend. Volume may be rising with price again. pic.twitter.com/w7Crg7MgjA

— The Wolf Of All Streets (@scottmelker) January 27, 2020

Impact of a deadly Coronavirus rattles investors

While bitcoin is surging, the US stock market is tumbling down as concerns over the impact of a deadly Coronavirus originated in China rattles the investors.

The S&P 500 sank the most in about four months while the Dow Jones Industrial Average briefly wiped the gains it made in 2020. China’s financial markets meanwhile remain closed until next Monday after authorities extended the Chinese New year break by three days as they struggle with the worsening virus crisis.

The offshore yuan dropped to its lowest level this year as the pneumonia-like virus infected over 2,700 people and killed 80.

Bitcoin buyers buying narrative?

Amidst this, gold gained in haven assets. Could this be why Bitcoin is also rising?

According to economists and trader Alex Kruger, “Stocks were at its most overbought level since 2012 when the coronavirus panic started, and thus particularly vulnerable to bad news.”

But what about the fact that Bitcoin price has already mirrored gold thrice this year. Kruger says “BTC has had a clear risk-off component in 2020. Iran was a game changer.”

Rager also feels Bitcoin price and Coronavirus’ connection has been “sensualized” when “Nothing abnormal has happened to BTC price,” because it is still ranging between $8k to $9200 but said “sustaining price is positive.”

According to Mati Greenspan, founder of Quantum Economics, “Perhaps a few are buying on this narrative but what seems more likely to me is that upward pressure is a result of Fed printing & additional liquidity in capital markets.”

But that means it's “acting more like a risk asset than a safe haven.”

So, it could be Fed or Bitcoin might have finally started acting like a safe haven or…

“Markets can remain irrational longer than you can remain solvent.”- John Maynard Keynes

One of my favorite quotes for investors and traders.

— The Wolf Of All Streets (@scottmelker) January 27, 2020

During the weekend, we started making our […]

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