Concerns about the Corona virus are not the reason for the 15% increase in Bitcoin price

The Bitcoin price has risen 15% in the past 2 weeks from $ 8,565 to $ 9,800. Although many people believe that the Corona virus will stimulate the price of Bitcoin to explode, it is not.

Bitcoin is on the rise, but not because of Corona

Over the past 12 months, the price of Bitcoin has not shown a clear inverse correlation with the stock market. It shows movements similar to gold, but not to the extent that it is considered a safe-haven asset.

However, the argument that investors are turning to Bitcoin as a way to combat the vast financial market due to concerns that the Corona virus has proved to be a safe haven for Bitcoin.

Compared to traditional safe-haven assets like gold and bonds, Bitcoin is still often regarded as a store of value and a means of exchange, not an appropriate safe haven.

Bitcoin tends to move independently of financial markets and secure markets. Short-term price movements are usually determined by exchanges that trade margin and squeeze short or long contracts.

BTC's long-term price volatility is affected by initial signs of accumulation and basic indices such as hash rate, increasing the number of unique addresses, halving and user activity.

"The BTC Bear was rejected, the trend has officially changed and many people still seem to not understand it

I created a chart to show you what it looks like when the trend changes to a higher peak and a higher low

It is a simple concept

BTC even closed above the critical level at $ 9,550


So what triggered the rally?

At the end of December 2019, CEO Su Zhu of Three Arbow Capital identified the BTC / USDT (Tether) pair with clear signs of accumulation.

When the BTC / USDT pair trades in a price premium higher than the spot price, it shows that accumulation in Asia is increasing. According to previous reports from Diar, China is still Tether's largest market. Zhu said in the last 2 months:

“The BTC / USDT spread and price action show clear signs of accumulation and money flows reverse at risk. I wouldn't be surprised to see 9K + before the end of January ″.

As early as December last year, investors accumulated Bitcoin to prepare for the halving event in May.

Fueled by the increasing accumulation rate as trader Josh Rager said, Bitcoin officially changed from the downtrend to the upside.

Bitcoin price has shown signs of strong increase and momentum has increased before Corona translation was announced. It established the technical bottom as an inverse head and shoulders (IHS) in a relatively higher time frame in December 2019.

Concerns about the Corona virus caused the Chinese stock market to plummet and the economy to falter when major cities were isolated. In such a period, investors said will not look to riskier and volatile assets like Bitcoin compared to traditional safe havens.

BTC price today | Source: Coinmarketcap

Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Thuy Trang

Bitcoin Magazine | Cryptoslate

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