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Cryptocurrencies gain amid coronavirus concerns
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Bitcoin breaks above $9000 mark
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Litecoin breaks above the upper limit of the Overbalance structure
Cryptocurrency traders have reasons to cheer this week as digital assets gained amid coronavirus concerns. Bitcoin gained around 12% and altcoins followed suit. Return of Asian traders from New Year holiday break can also be the reason behind increased demand for cryptocurrencies.
Bitcoin
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Source: xStation5
After breaking through the topside resistance of the long-term downward channel (around 8000 USD) BTC headed north. The demand side, supported by global panic, managed to reach 9000 USD and the coin now approaches the upside of the short-term upward channel. In case the price pulls back, a test of the 9000 USD handle may be on the cards. Provided that BTC breaks below that support, the 8000 USD level, ranging near 23.6% Fibo level, would become the new key support to watch. However, in case bulls regain control over the market, an attack at the resistance zone near 10 000 USD looks like a possible scenario.
Litecoin
Source: xStation5
After trading in a downward move for almost 7 months, Litecoin finally managed to break above the upper limit of the Overbalance structure (65 USD). In theory, such a situation hints at trend reversal. The first resistance to watch, should the coin continue to rise, can be found at 78 USD - the level marked with 38.2% Fibo level. The next resistance in line can be found at 87 USD - the level that saw a few price reactions in the past.
Coronavirus may disrupt cryptocurrency supply
Two leading Chinese providers of equipment for cryptocurrency miners announced that deliveries will be delayed by around a week. The situation is a result of the coronavirus outbreak in the country. This shows how the virus could impact cryptocurrency market as a bulk of mining operations is localized in China.
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