BTC/USD Retests Key Support Amidst Broader Risk Aversion Across Global Markets.
BTC/USD down 2.38% as global "risk-on" trade reacts to fears of broader economic disruption caused by the Coronavirus outbreak.
Bulls will likely be buyers on weakness as BTC/USD re-tests both the lower band of the blue support zone and the 50 day EMA. "Dip" buyers might be using the bottom of the blue support zone as a tight stop-loss, targeting a test of prior highs around the orange resistance zone.
A break below the lower band risks being perceived as a rejection of the $10k psychological level and a confirmed breakdown of its 2-month uptrend. Bears might be shorters on strength in anticipation of stop-loss related volatility below the lower band of the blue support zone.
RSI continues to move below key support, reaffirming the weak BTC/USD price action. Bears might see signs of bearish RSI divergence as an indicator that price could continue falling from here.
As a portfion of the global "risk-on" trade commences its migration to safer assets, BTC/USD also finds itself struggling to hold above $10,000. Further weakness across global equities could see increased volatility in broader crypto markets and may put to test BTC's "digital gold" status as funds seek out safety.
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