Bitcoin’s performance over the past week has surprised investors as the world braces itself on the spread of Coronavirus. As the mainstream financial markets collapsed, some investors viewed the digital asset market as a reprieve.
The world’s largest cryptocurrency needed the win after a week where members questioned its ‘safe haven’ credentials. Since the start of March, Bitcoin had fallen by more than 40 percent and its market cap had dipped below the $100 billion mark, triggering massive sell-offs. It was at this point that the virtual asset recovered by more than 20 percent in the span of 24-hours.
While Bitcoin maintained steady upkeep, the Dow and the S$P 500 hit their all-time low of 5 percent. The Dow fell to 18,085 while the S&P 500 dipped to 2174. At press time, Bitcoin was trading for $5926 with a total market cap of $108.35 billion. The 24-hour market volume clocked $41.24 billion after a 6,3 percent fall over the previous day.
On the hourly spectrum, Bitcoin held the support of $5851 and a resistance of $6861. This came after a week of increasing price spectrum that also created an altcoin surge.
The Parabolic SAR was above the price candles which meant that Bitcoin had bearish phases left to go through.
The Relative Strength Index was near the oversold zone, a sign that the selling pressure was much higher than the buying pressure.
According to the Chaikin Money Flow indicator, Bitcoin’s capital performance remained decent through the price turmoil. Since the graph was above the zero line, the money coming into the Bitcoin market was much higher than the money leaving it.
Bitcoin’s daily performance did not leave much to the imagination as March continued to disappoint investors. The support on the daily chart was $4944, one of the lowest since August 2019.
The Chaikin Money Flow indicator maintained level on the zero line as the in/out capital canceled each other out.
The Relative Strength Index was near the oversold zone after crashing below the lower zone.
Markers stayed below the price candles for the second time this month. This could also be connected to the money coming into the Bitcoin ecosystem. The Parabolic SAR on the daily chart was one of the positive outcomes for the cryptocurrency,
Although the markets were bleak, Bitcoin continued to rally against the tide. The resolve and developments made in the space remained the major reasons why the industry remained buoyed.