Industry news:
As China slips, the world economy remains on edge as markets posted relatively anemic trading yesterday. Bitcoin was no exception, slipping downward by around -2.5 percent. It is currently trading at around $8,450.
Although Bitcoin is often characterized as a hedge against global chaos, this has not been backed up by historical trends. In fact, it's been determined again and again that Bitcoin's price tends to follow the S&P 500. In order words, a healthy stock market means that Bitcoin will see healthy price growth.
That's what makes the panicked Chinese stock market so concerning — it could cause a domino effect that could severely impact world markets. The end result would destructive not only for the S&P500 but also for Bitcoin (BTC).
All eyes are on China now as it looks to regain the losses it recently incurred. However, the panic likely won't subside completely until the Wuhan coronavirus is fully under control.
Technical analysis:
BTC finally managed to break important pivot support at the price of $8.400, which is good confirmation for further downside movement.
The rejection of the Pitchfork upward channel is the early trigger for the downside. My advice is to watch for selling opportunities on the rallies using intraday-frames 5/15 minutes.
MACD oscillator is showing decrease on the upside momentum, which is sign of the weak buying.
Stochastic is in overbought zone and with fresh new bear cross
Resistance levels are set at the price of $8.740 and $9.000
Support levels and downward targets are set at the price of $7.736 and $6.930.
