Bitcoin (BTC) Breakout Or Another Fakeout?

Bitcoin (BTC) has finally broken past the $9,000 level once again and traders are now hopeful that we might see further upside. The vast majority of retail traders is bullish on BTC/USD at the moment anticipating further upside. This is not surprising to see before the next halving and the whole narrative of a potential bull run that has now been built around it. The cryptocurrency market certainly risks a major downtrend in the near future if and when the price crashes below the 200-day moving average again. That would prove that this had been a similar move to that of October, 2019. 

Developments in this market are not immune to what is happening on the global economic and political front. The Corona Virus in China recently got a lot of traction mostly because it is spreading rapidly now to other countries as well. The reason it is important to talk about this is because it is a major development that could play a key role in what unfolds next on a macro scale that will have major implications for emerging markets like the cryptocurrency market. There is also an interesting correlation between a Wuhan based biopharma company, RLSW and the Umbrella Corporation from Resident Evil. It is interesting how both have the same logos and both are similar companies. There is another view on this with some saying that “Corona” is an anagram for “racoon” which is another term better explained in the context of the game, Resident Evil. 

The S&P 500 (SPX) and WTI Crude Oil (USOIL) have both registered significant losses with an indication that further losses may be yet to come. The market is not short of catalysts to see a major correction at this point. We can see now that Bitcoin Longs have declined against Shorts on Binance Futures but the ratio is far different when we look at bigger exchanges like Bitfinex and Bitmex. It is therefore more reasonable to take all three into account which then comes down to 69% Longs against 31% Shorts for Bitcoin. This is a clear indication of the bullish optimism in the market at the moment. As the price continues to remain above the 200-day moving average, this ratio is expected to rise further increasing the odds of a fatal crash in the weeks and months to come.