Will Bitcoin Lose Momentum as Authorities Start to Gain Control of COVID-19?

‘Not Out of the Woods Just Yet’ Caution Experts with COVID-19

 Source: StockCharts BTCUSD Pricing February 20, 2020

 The recent momentum driving BTC prices in 2020 seems to have slowed somewhat over the past several trading sessions. This is indicated by successive red candlesticks reflecting a downturn in Bitcoin demand. 2020 heralded a new dawn for Bitcoin, as wave after wave of bullish sentiment continues to propel the world’s premier cryptocurrency to new short-term highs. Bitcoin’s dramatic gains for the year to date are notable. From under $7,000 per unit BTC, it broached the $10,000 barrier, before retreating to its current levels around $9,583 – as indicated on the chart above. What impresses about Bitcoin, among others, is the fact that it is extremely volatile – allowing for substantial price movements to the upside or downside. From a trading perspective, this volatility is sacrosanct. Without excessive price swings about the mean, shorting or going long with Bitcoin trading is less profitable.

Among the drivers of BTC appreciation in recent weeks is growing concern about the rampant spread of coronavirus a.k.a. COVID-19. As news of infections, mortality rates, and growing international concerns increase, so Bitcoin prices rise accordingly.  Experts routinely compare BTC to gold in this regard; it serves as a hedge against geopolitical uncertainty, global crises (such as coronavirus), and market volatility. In fact, a CEO of a prominent trading enterprise recently claimed in an op-ed that If the Virus Goes, Crypto Trading Could Go. This reinforces a school of thought that Bitcoin is a hedge against volatility. The current trend for January and February 2020 is bullish, with short-term bearish sentiment heading into March. However, the Bollinger Bands indicate that the upper band of $10,529.34 and the lower band of $9106.85 are well above the 50-day moving average and the 200-day moving average. This is confirmation of Bitcoin’s…

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