After a dip prior to Chinese New Year, Bitcoin is back on the road again. We are seeing rising prices and a positive market. Ironically, besides technical indicators, it is mainly the Corona virus that seems to be playing to the coin doing well. We put the details in a list.
Bitcoin beneﬁts from the Corona virus
It’s always crude, but in times of global tension, Bitcoin beneﬁts. We see the same effects around the outbreak of the Corona virus. Because many people in China choose to stay indoors, the Chinese New Year is celebrated less exuberantly than usual. As a result, fewer people have had to sell their crypto coins for New Year’s gifts. Other factors also indicated that the impact of Chinese New Year would be less than in other years.
In addition, the situation surrounding the Corona virus in China is still unclear. Since the crypto market in China is large and public life (and thus the use of ﬁat money) has come to a halt, Bitcoin seems to be gaining in popularity.
Technical indicators are also positive
The recovery of prices also has a positive effect on the technical indicators. For example, the unknown Bitcoin Guppy indicator is green for the ﬁrst time in 300 days. The last time this happened, on April 9 last year, a rally followed. Also before that, in 2018 there was a strong price increase. Of course, crypto trading isn’t for guppies, so luckily there are more indicators, like the Puell multiple, that conﬁrm the positive sentiment. The more advanced ‘Mayer Multiple’ is also bullish.
What does this mean for the Bitcoin price?
So it seems that the Bitcoin is preparing for the next rally with rising prices as a result. Not everyone is completely happy with that. For example, Bitcoin legend Gavin Andresen wonders whether Satoshi Nakamoto has not misjudged the price effect.