Bitcoin made a big impulsive move to the upside yesterday. It had to do with the rise in the stock market primarily. We saw the S&P 500 (SPX) close the day in green with more than a 7% gain. The rest of interconnected markets also followed. The reason why the market rallied had to do with a temporary restoration of confidence on Wall Street because the Coronavirus outbreak has slowed down in New York for now. As hilarious as it is for investors to think that this is over even for short-term, the fact remains that this is all too overextended now and we are primed for the next big decline. As for BTC/USD this crash is going to be even more devastating and would formally take us into a larger bear trend.
The price of Bitcoin has not entered a bear trend just yet. It has declined below key levels like the 200-day moving average and has shown signs of bearishness on larger time frames but we have yet to see it print a series of lower highs and lower lows and for the price to enter a larger bear trend. When that happens, it is going to be a whole different outlook for this market and all this temporary bullishness and greed even in the face of something so pressing and grave as the Coronavirus outbreak would soon end up in trouble for most of these investors that are still making such risky investments. We have clearly seen that Bitcoin is not a safe haven asset but there are still a large number of traders that believe that it could be.