Bitcoin Breaks Below $9,200 Amid Coronavirus Fears

It seems like the entire world is affected by the deadly coronavirus which is now spreading throughout Europe. In the cryptocurrency news, we can see that the price of Bitcoin dropped another 4% overnight and is now at $9,196 on fears that this virus is spreading to more countries. As Bitcoin breaks below $9,200, we can see that this is the level that analysts have labeled as crucial support at $9,450 and $9,400 to a new 3-week low at $9,281.

Today’s pullback was also preceded by a tweezer top candlestick pattern on the daily timeframe. At the time of writing, the Bitcoin price is finding support near the 50-day moving average and the volume profile visible range (VPVR) high volume node at $9,430 and $9,319 is its resistance.

The fact that Bitcoin breaks below $9,200 dragged many altcoins besides their support levels, too. The ETH news show that the native cryptocurrency of the Ethereum network, Ether (ETH), is now down by 7% and currently at $240. Ripple’s XRP token is dragged down by 8.33% today and is at $0.2438 while Bitcoin Cash (BCH) has fallen to $335 in a 9% decline.

In a sea of losers, we can see that Bitcoin SV (BSV) is leading the top ten with losses of around 13% on the day and a new price of $234. The 10th Tezos is also vulnerable and lost 12% overnight, going to the new price of $2.62.

As Bitcoin breaks below $9,200, analysts are pointing to three main reasons why a selloff like this is happening. First of them are obviously the coronavirus fears which affected the stock markets, too. On top of that are some analysis that Bitcoin and altcoins had become overbought after the recent multi-week rally which saw the BTC price moving from $6,400 to $10,500.

The analyst Kevin Kelly from Delphi Digital explained the following:

“This market is still highly speculative and conditions can turn on a dime, but taking a step back we are beginning to see some maturation as the level of sophistication across investors and traders increases.”

He also referred to the chart which shows the wide distribution of gains amongst crypto assets since the start of 2020. While Bitcoin breaks down below $9,200, the analyst explained:

“The latest rally in the crypto market is quite a bit different from what we saw last year when BTC led most alternative crypto assets. The shift in leadership this year has favored other large and mid-cap names, many of which drastically underperformed BTC over the last year.”