BTC Forms A ‘Golden Cross’ Following The Coronavirus Outbreak

The latest Bitcoin news show us that BTC forms a ‘golden cross’ and will likely benefit from a sharp drop in the Asian stock markets due to the coronavirus, according to cryptocurrency analysts. In times when the Asian stock markets are plunging, Bitcoin is keeping it safe above $9,300 and preparing for a new outbreak which may soon bring it into the five-digit zone.

According to data from Coin360, the stock markets are starting a “very volatile week” and BTC/USD is already making swift gains this February 3. Today’s situation on the market brings us a mix of reds and greens but this is only the update for the morning.

At the same time, the Shanghai Composite Index (SSE) opened with a decline of almost 8% as fears over the economic impact of the coronavirus continue to heighten. Authorities have also fielded the criticism for their handling of the outbreak with China’s central bank injecting a huge lump sum of capital which is 1.2 trillion yuan or $170.9 billion – into the local market.

Now that BTC forms a ‘golden cross’ we can also see that the 24-hour gains remain flat but the anticipation remains high on the back of the monthly gains nearing 35%. “A very volatile week has started for the equity markets,” said the analyst Michael van de Poppe and summarized that he expects this impact to increase when the European markets open several hours later.

A very volatile week has started for the equity markets.

Shanghai just opened 9% lower, while on the same time #Bitcoin tries to break through $9,500-9,600.

Even more interested to see how Europe opens in 6 hours. pic.twitter.com/uH0uL5hryX

— Crypto Michaël (@CryptoMichNL) February 3, 2020

Most analysts now have mixed opinions over the extent to which the coronavirus is “helping” or “hindering” the Bitcoin price action. As per the trader Tone Vays, while Bitcoin gained in some way from the resulting economic turmoil, serious escalations would likely produce the opposite effect.

“As trust in global institutions and markets continues to deteriorate, we will see highly mobile digital assets like Bitcoin explode in value,” said Jehan Chu in the cryptonews, known as the managing partner at the blockchain investment firm Kenetic Capital.

As BTC forms a ‘golden cross’ we can also see that altcoins are showing signs of growth. Many of the largest ones have inched around 1% in gains – with today’s best performer in the top 10 being XRP and its 2.62% surge in the morning, bringing it to a new level at $0.2519.