The recent Coronavirus outbreak was supposed to help Bitcoin and the crypto market in general. Initially, it did, as most altcoins saw significant gains for the past month, unfortunately, the run ended around 2 weeks ago.
Most analysts and traders were definitely expecting a pullback, however, the pullback that we have seen has been far bigger than what everyone expected, especially considering that the Coronavirus outbreak seems to be far more serious than what initially was thought.
Bitcoin is currently trading at $8,611 after a small bounce from $8,445. The daily RSI was dangerously close to the oversold level and most traders expect the digital asset to bounce significantly from there.
The daily uptrend was lost but the weekly remains intact. The long-term for Bitcoin is still quite bullish and its market dominance has been growing for the past few weeks.
The upcoming Bitcoin halving will also play a significant role in its value although it might not impact the price until months later.
Bulls are trying to set a 4-hour uptrend but they need to first break above the 12-period EMA, which has remained intact for the past 4 days and then break the high of $8,971. There is definitely a lot of resistance but if BTC can manage to confirm the uptrend, bulls will be on their way to change the daily uptrend again and confirm a weekly higher low.