Bitcoin Rallies After Biggest Weekly Drop Since November

By Omkar Godbole

  • Bitcoin produced a doji candle on Sunday, neutralizing the immediate bearish setup.
  • A UTC close above Sunday’s high of $8,756 would validate the seller exhaustion signaled by the candle and potentially yield a test of key resistance at $9,500.
  • Chart-driven selling could gather pace if prices fail to defend Sunday’s low of $8,410, leading to a deeper sell-off to support levels at $8,213 and $8,200.

Bitcoin (BTC) is flashing green on Monday, having suffered a double-digit price drop last week. 

The top cryptocurrency is currently trading over $8,740, representing a 1.9 percent gain on a 24-hour basis, according to CoinDesk’s Bitcoin Price Index

The news will be welcomed by bitcoin’s bulls, as prices fell by 13 percent in the seven days to March 1, registering the biggest weekly loss since the third week of November. Back then, the cryptocurrency dropped by 18.7 percent over the same period.

Equity markets across the globe also fell sharply last week as investors shunned risk on fears the coronavirus pandemic will cause a serious slowdown in the global economy. 

The S&P 500, Wall Street’s benchmark stock index, fell for the seventh straight day on Friday. The sell-off wiped out five months of the rally from 2,855 to 3,393. Even so, the index outperformed bitcoin on a weekly basis with an 11 percent drop. 

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