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  • Bitcoin price failed to find support at $9,800 and $9,600, giving more control to the sellers.
  • The descending channel resistance hints that recovery above $10,000 could be a pipe dream in the near term.

Spot rate: $9,578

Relative change: -79

Percentage change: -0.84%

Trend: Bearish

Volatility: High

BTC/USD daily chart

Bitcoin price bulls are struggling to hold the price above the ascending channel support. Due to the rejection at $10,000, recovery has been limited and Bitcoin bears have increased their entries and grip. Technical signals have remained bearish hinting further breakdown to $9,000. However, support is expected at the 38.2% Fibo taken between the previous drop from $13,862 to a low of $6,402. The 50-day SMA will also try and offer support marginally above $9,000.

BTC/USD 2-hour chart

Bitcoin downward action continues within a descending channel. The channel’s resistance has been tested more than once. Therefore, BTC/USD is likely to stay within the confines of the channel longer than expected. In other words, a recovery above $10,000 is very unlikely in the coming sessions. On the contrary, due to the drab technical picture, losses are likely to extend towards $9,000.

Bitcoin drop, US stock market and the Coronavirus

The stock market in the US recorded the highest fall in the last six months on Monday amid intensified Coronavirus fears. Bitcoin, failed to rise to the action as a safe-haven for investors, instead, diving 4.6% on the same day. The drop was the biggest since last week, however, BTC is still up about 32% in 2020. Commenting on the drop in both the stock market and the Bitcoin market, Mati Greenspan said:

There’s certainly a bit of fear in the bitcoin market, but it’s not anything close to the panic we’re seeing on Wall Street today, with the clear flight to safety.

He added:

Three percent is a very different figure for stocks and for bitcoin.