BTC/USD: Bitcoin further confirms its status as a safe haven due to rise in relation to Coronavirus crisis

Bitcoin (BTC) is up today after a short period of consolidation. The leading crypto gained over 3% recently with a recent peak at $8,729.

Bitcoin in sync with gold

Stock markets and oil prices collapsed at the beginning of this week amid growing fears and anxiety about the economic impact of the spread of China's Corona virus. Traditional safe havens such as gold, silver, treasury bills and the Japanese yen gained ground in the Asian session. Bitcoin also gained ground, which tends to confirm its status as a safe haven.

Although the correlation of Bitcoin's rise with risk sentiment is not yet clear, it tends to develop in sync with gold futures. At the end of the previous week, open interest on gold futures jumped by nearly 10,450 contracts, meaning that the market reversed previous declines.

The further escalation of trade disputes between the U.S. and the rest of the world will fuel investor interest in gold - both physical and digital. The correlation between the two assets could increase further.

According to Michael McGone over at Bloomberg, the Bitcoin will live up to its digital gold stock this year. Experts believes that the BTC has a lot in common with gold, which means that they are forced to move in sync. As this year is expected to be a prime year for safe haven stocks, "gold's movements will act as an indicator of Bitcoin's price performance," Mcglone says.

Technical Analysis

From a technical point of view, note that the BTC/USD broke above its 200-hour moving average ($8,614) early on Monday, but is now just below its 200-day moving average ($8,740), which could block its rise. Higher up, the next target would be the psychological $9,000 threshold.

On the low side, $8,500, followed by the 100-day moving average at $8,300 and last week's low at $8,210 will be the first potential support levels to consider, ahead of the psychological threshold of $8,000.

Currently, Bitcoin is trading at $8,772.

Daily BTC/USD chart: