Bitcoin Holds Up StrongBitcoin refuses to go lower; the 50 EMA acts as support and holds the coin above $13,000.
On Tuesday, Bitcoin broke its short ranging period between $12,650 and $13,350. The coin went up to $13,850 but failed to achieve a vital breakthrough at the $14,000 level.
Coronavirus and Bitcoin
BTC’s failed breakthrough and subsequential downturn may be in part due to the stock market experiencing a severe pullback this week. On Wednesday alone, the NASDAQ 100 was down 3.5%, which is a severe downturn for a single day (the European markets have been faring just as badly). If stocks continue to tumble amidst the fear of Coronavirus, they might drag Bitcoin's price down along with them, as they did in March. Therefore it may be a good idea to keep an eye out and see how the situation develops in the equity market. If the $13,000 support breaks, then we could see the price retrace to $12,100.
Upward Potential
Although BTC has so far been unable to break the $14,000 resistance, this does not mean that it won't do so. The fact that the coin is still holding above $13,000 holds weight. The 50 Exponential Moving Average (EMA) is one of the best indicators to identify Bitcoin's direction on the 4h chart; it is currently below the price, indicating bullish momentum. The 50 EMA is now acting as support and represents suitable entry points for traders looking to jump in.
If Bitcoin manages to break the $14,000 resistance, then there is a minor resistance around $15,000 and a major one around $16,000.
