- After a 7-day downtrend, Bitcoin and other Altcoins were able to initiate a short-term upswing.
- The coronavirus is regarded worldwide as a major factor of uncertainty, which causes investors to fear both the crypto and stock markets.
Bitcoin has been in the green since yesterday and has recorded an upward trend of 2.24% to a price of USD 8,856.06 within the last 24 hours. Nevertheless, the 30-day chart shows a minus of 5.49% and the 7-day chart shows a minus of 8.49%.
Total market capitalization has risen from USD 243 billion to USD 253 billion within the last 24 hours. Since January 1, 2020, almost 50 billion USD have been newly introduced to the market, bringing the total to a former 195 billion USD.
Bitcoin Trader Josh Rager describes that Bitcoin may have found its bottom. According to him, the checkpoint for the entire history of the CME BTC chart is 8,160 USD. Thus, investors should note that the weekly candle remains above USD 8,160 with a wick that reaches up to USD .7800. Then, according to Rager, Bitcoin can initiate a new upward trend.
Bitcoin recently showed a similar development to the global stock market. The Dow Jones Industrial Average recorded its biggest weekly decline since the last financial crisis in 2008, and the S&P 500’s profits of the last five months were wiped out in just a few days, according to fundstrategy founder Tom Lee.
Crypto Michaël describes that both the stock market and Bitcoin have shown a similar trend in the last few days and upswing within the last 24 hours. Not only the stock market is rising, but also the commodity markets and the price of oil and gold.
Meanwhile; equity markets bouncing quite strong today.
Not only equity markets bouncing, commodities are also stabilizing and oil is bouncing up.
Interesting to see how $BTC and crypto is reacting further, as we've seen a good bounce today on $BTC too. pic.twitter.com/gRGBHUrzSQ
— Michaël van de Poppe (@CryptoMichNL) March 2, 2020
If this correlation persists, Bitcoin could lose its reputation as “digital gold”. According to the well known blockchain analysis company Glassnode, Bitcoin’s latest fundamental data points to a rally that will soon begin. Despite the recent drop in price, Glassnode believes that technical indicators point to a rising pric:
Although the price has continued to drop, last week’s decrease in active entities has slowed to a halt, signaling a potential recovery in on-chain economic activity and providing hope for a rally in the coming weeks.
Glassnode further states that Bitcoin has maintained to stay above the 200-day moving average and thus above an important support level. The report further states that the MVRV Z-Score indicates that the price of Bitcoin continues to rise. The MVRV Z-Score is a proprietary indicator designed to signal when Bitcoin is overbought:
The present low MVRV Z-Score suggests that BTC is still undervalued, with significantly more room to grow before reaching the next market top. This provides support for many analysts’ prediction that bitcoin will stay above $8000 for the time being.
Ripple (XRP) shows an increase of 2.47% to a price of USD 0.2363, IOTA increases 4% to USD 0.2235 and Ether by 3.96% to USD 229.02. It remains to be seen whether this short-term trend is of a long-lasting nature.
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