Trend: Bitcoin has been quite volatile in recent weeks and has closely tracked the equity markets, which have seen sharp moves in both directions. The cryptocurrency, however, seems to have decoupled from stocks on Monday.
The top cryptocurrency by market capitalization found bids near $5,850 around midnight UTC and is currently trading near $6,290, representing a 7-percent gain on the day. Notably, the cryptocurrency is better bid despite the decline in the global equity markets and gold.
The MSCI Asia Pacific index ex-Japan fell by 0.3 percent early on Monday, while stocks in Japan declined by 1.57 percent. European equities are also trading in the red at press time, alongside moderate losses in the S&P 500 futures. Gold is trading down near $1,620 per ounce.
The renewed risk-off mood seems to have been triggered by fears that the recently introduced stimulus efforts across the globe may not be enough to buffer the global economy from shock of the coronavirus outbreak, which is showing no real signs of slowing down in the US and Europe.
With bitcoin establishing its third higher low near $5,850 on the daily chart amid the losses in equities, some investors have turned bullish and are expecting a rise to $7,000. The cryptocurrency, however, is yet to take out the resistance of the descending trendline on the hourly chart and is holding below the 200-hour average at $6,400.
A convincing move above that level would strengthen the odds of a rise to $7,000. Alternatively, a drop below $6,000 would expose the Asian session low of $5,850.
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