BTC and 🦠CoronaVirus in China - how will the epidemic affects?
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Technical and fundamental research inside!
International news is spreading panic among investors concerned about the rapid spread of the Wuhan CoronaVirus. It seems that the disease has moved beyond China and started to spread around the world. According to the latest data, more than 2799 cases have already been recorded (including 2744 in China) and 89 deaths. Also, isolated cases of the disease were detected in Thailand, South Korea, Australia, the United States, Singapore, and other countries.
In the Asian trading sessions, gold, silver and bitcoin opened higher, confirming the theory of strengthening the first cryptocurrency in the conditions of flight from risk, especially when it comes to contradictions in international trade.
Of the 2,799 confirmed cases worldwide, 2,744 (98%) occur in China. Curiously, none of the cases outside of China resulted in a fatal outcome, which raises the question of the adequacy/efficiency of treatment at the initial stage in China, where hospitals in the epicenter are overloaded due to panic and some patients may not receive timely adequate treatment. Despite attempts by the media to impose history, we must understand that objectively the outbreak of a new virus is a purely Chinese problem, and in the context of markets, it is a problem of shock measures to counteract the Chinese authorities. It is worth noting that who did not propose to put entire cities in quarantine, this is a merit and result of the strong political will of the Chinese authorities.
Let me remind you that bitcoin was created as a response to the crisis in the real estate market that broke out in 2008 and had serious consequences for the entire economy. Over time, the cryptocurrency managed to win the interest of traditional investors, who began to consider the PTS as one of the hedging tools against geopolitical risks.
This is particularly evident during the escalation of the trade war between the US and China. Then the bitcoin exchange rate significantly strengthened, as many believed that it could offer them protection from shocks in the financial markets. It is noteworthy that this happened against the background of falling stock indexes.
Back in may this year, the cryptocurrency dealer SFOX published the results of a study of volatility in the digital asset market. In the report, he noted that bitcoin shows " almost perfect negative correlation with the S&P 500 index." According to the researchers, this is a confirmation that BTC is widely considered by investors as a hedging tool against global market risks.
Therefore, it can be argued that the Further growth of tensions in trade relations between the United States and the rest of the world, the Outbreak of the virus epidemic, is likely to fuel interest in "digital gold".
blog.sfox.com/the-sfox-crypto-market-volatility-report-may-2019-2a330faca5b
If a new recession does break out on the international markets, which is close to a depression in its scale, this may become a moment of truth for bitcoin. If the cryptocurrency manages to establish itself in the status of a protective asset, this can give a strong impetus to the further growth of the BTC.
Fundamentally, the further spread of the virus and the negative reaction of the classic stock market will lead to a rapid growth of BTC!
______________________________________________________________________________________________________________________________________________________
Technically, we are already seeing an inverse correlation with the stock market, showing strong bullish sentiment in crypto assets.
We have at least 3 indicators showing this right now:
1. 5 Bullish 12H candles!
2. MACD started UP in 12H!
3. Awesome Oscillator - started UP!
Therefore, we open a long position with targets above 200MA-$9400. If we reach this level we will start so the expected bullish cycle!
Stop-loss $8453.
______________________________________________________________________________________________________________________________________________________
Don't forget Thumb UP👍 if you like my research.
International news is spreading panic among investors concerned about the rapid spread of the Wuhan CoronaVirus. It seems that the disease has moved beyond China and started to spread around the world. According to the latest data, more than 2799 cases have already been recorded (including 2744 in China) and 89 deaths. Also, isolated cases of the disease were detected in Thailand, South Korea, Australia, the United States, Singapore, and other countries.
In the Asian trading sessions, gold, silver and bitcoin opened higher, confirming the theory of strengthening the first cryptocurrency in the conditions of flight from risk, especially when it comes to contradictions in international trade.
Of the 2,799 confirmed cases worldwide, 2,744 (98%) occur in China. Curiously, none of the cases outside of China resulted in a fatal outcome, which raises the question of the adequacy/efficiency of treatment at the initial stage in China, where hospitals in the epicenter are overloaded due to panic and some patients may not receive timely adequate treatment. Despite attempts by the media to impose history, we must understand that objectively the outbreak of a new virus is a purely Chinese problem, and in the context of markets, it is a problem of shock measures to counteract the Chinese authorities. It is worth noting that who did not propose to put entire cities in quarantine, this is a merit and result of the strong political will of the Chinese authorities.
Let me remind you that bitcoin was created as a response to the crisis in the real estate market that broke out in 2008 and had serious consequences for the entire economy. Over time, the cryptocurrency managed to win the interest of traditional investors, who began to consider the PTS as one of the hedging tools against geopolitical risks.
This is particularly evident during the escalation of the trade war between the US and China. Then the bitcoin exchange rate significantly strengthened, as many believed that it could offer them protection from shocks in the financial markets. It is noteworthy that this happened against the background of falling stock indexes.
Back in may this year, the cryptocurrency dealer SFOX published the results of a study of volatility in the digital asset market. In the report, he noted that bitcoin shows " almost perfect negative correlation with the S&P 500 index." According to the researchers, this is a confirmation that BTC is widely considered by investors as a hedging tool against global market risks.
Therefore, it can be argued that the Further growth of tensions in trade relations between the United States and the rest of the world, the Outbreak of the virus epidemic, is likely to fuel interest in "digital gold".
blog.sfox.com/the-sfox-crypto-market-volatility-report-may-2019-2a330faca5b
If a new recession does break out on the international markets, which is close to a depression in its scale, this may become a moment of truth for bitcoin. If the cryptocurrency manages to establish itself in the status of a protective asset, this can give a strong impetus to the further growth of the BTC.
Fundamentally, the further spread of the virus and the negative reaction of the classic stock market will lead to a rapid growth of BTC!
______________________________________________________________________________________________________________________________________________________
Technically, we are already seeing an inverse correlation with the stock market, showing strong bullish sentiment in crypto assets.
We have at least 3 indicators showing this right now:
1. 5 Bullish 12H candles!
2. MACD started UP in 12H!
3. Awesome Oscillator - started UP!
Therefore, we open a long position with targets above 200MA-$9400. If we reach this level we will start so the expected bullish cycle!
Stop-loss $8453.
______________________________________________________________________________________________________________________________________________________
Don't forget Thumb UP👍 if you like my research.
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My congratulations!
🔹Академия инвестиций FINOMEN Премия «Образовательный проект года» по финансовой грамотности в 2021 по версии Investment Leaders Award) - finomen.academy
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