Bitcoin has been holding the $5,000 support level since Tuesday, March 17th.
BTC opened the day above $5,200.
The King of Crypto is now trading at $5,572 (Binance rate).
Earlier on in the day, the People’s Republic of China reached a new milestone of zero new cases of Coronavirus infection.
After a tense two weeks in March 2020 due to the economic effects of the Coronavirus, Bitcoin (BTC) is currently trading well above the psychological support of $5,000. The King of Crypto had opened the week by testing the $4,400 area only to slowly gain momentum and regain $5,000 on Tuesday, March 17th. BTC opened the day above $5,200. It has risen above the $5,500 support area and is trading at $5,572 (Binance rate) at the time of writing this..
A Wedge On the 4-Hour BTC/USDT Chart
Further analyzing this price movement on the 4-hour chart, we find that Bitcoin is printing a wedge with a ceiling at around $5,900. Also to note is that the current value of BTC has the 50 MA (white) to contend with as a short term resistance.
4hr BTC/USDT Chart courtesy of Tradingview.com
The Bollinger Bands on the four-hour time frame are also exhibiting a squeeze thus indicating that a move of significant value is ahead. High chances that this move will be in the upward trajectory given the fact that the Daily MACD is indicating a situation where it will cross in a bullish manner below the baseline.
Daily MACD showing signs of crossing below the baseline.
News of No New Cases of Coronavirus Infection in China
Only a few hours ago, statistics from the People’s Republic of China indicate that the country has had zero new confirmed cases of the Coronavirus in the last day. This is the first time the country has reached this milestone since the virus struck the nation three months ago. This is definitely good news. This positive news will provide much-needed hope in fighting the pandemic that has claimed 9,276 lives at the time of writing this.
Perhaps the same news is the reason Bitcoin has risen past, and maintained, its value above $5,500. This is in tune with an earlier theory postulated by Ethereum World News that proposed a BTC recovery will only become possible once good news about beating the virus globally, starts to hit the airwaves and internet.
(Feature image courtesy of Tyler Nix on Unsplash.)