- Bitcoin breaks to a new high in 2020 at USD 9,420 as coronavirus health fears in China drive money away from traditional markets, causing stockmarkets to slip globally.
- Bitcoin is projected to enjoy its best-performing first quarter this year, in terms of US dollar price valuation
Bitcoin has broken through the ceiling today, marking a new monthly and yearly high so far at USD 9,420 (CoinDesk), where it has more or less remained trading for the past 12 hours, ensuring that Asian market gains have passed on well into late European trading.
Will America take over and ensure that Bitcoin keeps up at that level or will profit taking take its due course? We will wait to find out but analysts hope that USD 9,000 at least will hold for a full 24 hours, though the bulls will want Saturday to emerge without price once falling below that psychological line.
It’s still a lot of guesswork as to what exactly is causing this rally, but some market traders are insisting that traditional markets reacting to health fears in China with the coronavirus-led panic is to blame.
Not for the first time this month, the world’s largest digital asset moved ahead of the 200-day moving average (200MA) at USD 9,000 at the peak of Beijing trading time, ensuring that it recorded more than 25% cumulative monthly gains. All this has happened on the back of tumbling stock markets globally, as the Dow Jones Industrial Average fell by over 450 points related to travel shares slipping on prospects of global economic growth slowing down due to the coronavirus clampdown.
The S&P 500 index also dipped 1.5%, but is now in the midst of a correction. Singapore-based investment fund Three Arrows co-founder Su Zhu told Coindesk:
“[Bitcoin] rally looks Asia-driven with the Chinese equity market reopening after holidays has been delayed due to the coronavirus, so traders itching for activity may have set their sights on the 24-7 crypto markets in the meantime.”
All of the past week’s excitement seems to place Bitcoin in a great position now in terms of investment. According to analytics firm Skew Markets, Bitcoin investors are now well on track to making this year’s first three months the best ever since 2014. So far, investors have already made more on their holdings than any other Q1 since 2014, with data showing institutional interest at a steady and sustained influx
So far, as we mentioned above, Bitcoin gains for an investor since 1 January is just below 30%. Not for six years has any first quarter performed as well, with Q1 having a historical tendency to post losses.
Bitcoin’s gains so far in 2020 amount to just under 30%. In no other quarter in the past six years did markets perform that strongly. In fact, when looking at the past six years, it would seem that Q1 is a bad time to buy Bitcoin, with 39% losses recorded in 2014, followed by 24% and 3% drops in the following two years. The years 2017 and 2019 did post positive gains but at just above 10%, they pale in comparison to this month alone.
Long-term bulls will not see these short time frames in terms of multi-year Bitcoin potential of course, since even from an annual low perspective, Bitcoin has been growing every year since data was recorded. Bitcoin futures interest also suggest that institutional investors don’t really care either, buying and engaging with crypto via Bitcoin derivatives.
Skew data shows that an aggregated open interest in Bitcoin futures products has never been higher at USD 3.7 billion yesterday, with trading volumes in Bitcoin in general increasing across all markets.
At the same time, not all signs are completely bullish, with Google search requests for Bitcoin petering out. As we pointed out in yesterday’s analysis, market sentiment, despite the rally, has returned firmly to neutral on the so-called Greed and Fear Index.
Now, others like crypto influencer also believes that this could be a greed correction coming into play, with a score 57 indicating this likelihood.
Cointelegraph analyst filbfilb, doesn’t agree, however, saying that the more important 200MA resistance is being breached again and could turn out to be the new support. If another old resistance level at USD 9,555 is broken, the stage could be set for a price escalation.
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The post Trending Bitcoin News and Market Sentiment January 29th, 2020: Coronarally Ensures 2020 is Already Bitcoin’s Best Performing Q1 Since 2014 appeared first on BitcoinNews.com.
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