Bitcoin Still Lacks Bullish Momentum 

The price of Bitcoin has started the day in green but it lacks sustained bullish momentum for it to rally higher just yet. The 4H chart for BTC/USD shows that we are now at a point where a lot of retail bulls are hoping and praying that the price rallies further from here but it is likely to end in a failed rally and we might see the market decline much lower from here in the near future. The near-term outlook of the stock market remains bleak and this does not help. The price could continue to trade sideways for a whole but it risks a major decline in the near future. 

The S&P 500 (SPX) plunged below the 200-week moving average again which is quite a bearish development. The Federal Reserve’s attempts to save the market proved futile and we are seeing more panic return to the market. Meanwhile, the Coronavirus situation is getting worse by the day. We might see a slow down in the outbreak in summer but for now it has already crippled lives and businesses across the globe. Investors have every reason to worry that this could have a major impact on the stock market. However, it is important to note that this recent decline was an overreaction for the most part. It got a lot of people very scared and achieved its purpose. Now the big investors would buy at lower prices and we might see a near-term recovery as things normalize for the time being. 

The oil and gold markets are also in serious trouble. We previously discussed the outlook of both and they have played out as we expected. The EUR/USD forex pair is also at a decision point. We are going to see either a decline below the 200-day moving average or the pair would find support there and rally further. In any case, all of these developments would have important implications for the cryptocurrency market in the days to come which is why it is important to remain focused on it. The price of Bitcoin matter, yes but it is run by algorithms and bots for the most part and manipulated to a very high degree. So, it makes a lot more sense to keep an eye on larger financial markets to ascertain what the big players in this market are thinking next.