Bitcoin Price Analysis: BTC/USD breakdown to $7,000 imminent; Coronavirus now a global pandemic

Bitcoin price downward momentum has been unstoppable since the slide from levels above $9,000. Despite the mitigations put in place the buyers, selling activities continue to mount amid fears of the deadly Coronavirus. Bitcoin is trading above $7,600 after a shallow recovery from $7,572 (intraday low). The price teeters at $7,571 following 4.64% loss on the day. Bitcoin’s declines lag behind Ethereum’s 6.93% and Ripple’ $6.04%.

Coronavirus update

The World Health Organization (WHO) on Wednesday declared the Coronavirus a global pandemic. The virus continues to ravage through the European countries with Italy being the worst hit in the region. Cases of infections have topped 120,000 around the world with a death toll of more than 4,300. Many countries are resorting to flight cancellations to avoid ‘importing’ the virus into their jurisdictions in order to contain the deadly disease.  

Bitcoin price technical picture

Bitcoin price is still falling as the Coronavirus spreads around the world. Its status as a hedging asset has been put to test but Bitcoin has failed to rise to the occasion. However, this could also mean that BTC is becoming a mainstream asset that responds to global events just like the traditional assets in the financial markets.

Looking at the hourly chart, BTC/USD is trading in the confines of a descending channel. The channel support has been instrumental in forcing rebounds in the ongoing downtrend. However, a recovery above $7,700 has failed, forcing Bitcoin down a painful trail under $7,600. If support at $7,500 fails, and the channel support caves in, BTC/USD could vulnerably breakdown to test $7,200 and $7,000 respectively.

The RSI and the MACD emphasize the selling pressure. Recovery has become unattainable and now the path of least resistance is downwards. Moreover, Bitcoin is yet to hit oversold levels even in the short term range, which means the sellers still have room to play.

BTC/USD 1-hour chart