- Bitcoin (BTC) recovers over the $8,500 and $8,600 resistances
- Possible reasons for the recent sharp BTC price increase
- Bitcoin is likely to continue it uptrend in the near term
Bitcoin News Today – Bitcoin bulls seem to be back again, as Bitcoin (BTC) and the majority of coins in the market are now in the green. Bitcoin just broke over a major hurdle point after a 5 percent rise, bringing BTC to USD price to $8,653 at the time of writing. Josh Rager – a digital currency analyst – recently said that anything holding over the $8,000 mark is bullish the longer it remains there.
$BTC – nice start to open the week
I'll continue to accumulate sats via trading at these ranges and will buy spot $7ks or below
The longer we range above $8k, the more bullish, imo
Also accumulating a few specific altcoins at these levels for longer term holds pic.twitter.com/CG58LgLX7c
— Josh Rager 📈 (@Josh_Rager) January 27, 2020
However, many believe there might be a series of factors in play that have pushed Bitcoin (BTC) back into the bullish zone. Some of the factors contributing to the sharp recovery of the coin include:
Coronavirus, Falling Yuan
The recent Coronavirus outbreak in China has increased travel restrictions in the nations and the death toll is on the rise. Concerns are rising over the effort of the Chinese authorities to handle the situation, as cases start to emerge across the globe. As such, the value of the yuan has dropped, according to Reuters. The offshore yuan plunged by about 0.5 percent to just below 7 per dollar, its lowest since January 8.
Bitcoin (BTC) Price Today – BTC / USD
To prevent the spreading of the contamination, the state announced it would extend the Lunar New Year holidays to February 2. A plunge in fiat strength is often a bullish signal for BTC, and China has an enormous sway on BTC markets and sentiment.
Gold Makes another Significant Upward Push
The price of gold has also been on a similar recovery. The asset just made another push towards the $1,600/0z again. Reports revealed that analysts are keeping a close eye on the interest rate decision of the Fed on Wednesday. On the other hand, the S&P 500 saw its worst week since August last year.
This is not the first time the price of Bitcoin (BTC) is moving in tandem with that of gold in the near term, which strengthens the safe haven narrative for the asset. There has been a strong correlation between both assets for quite some time.
The Political Crisis in Italy
Italy is not one of the major players in the digital currency world. However, the nation is in the grips of a political crisis again. On Sunday evening, Italians were awaiting the election results from the rich region of Emilia-Romagna close to Milan, which could have handed power to the nationalist Northern League of Matteo Salvini.
Trustnodes pointed out that the sharp increase in the price of Bitcoin (BTC) might have been pioneered by the potential power shift, which could see anti-Euro leaders in charge.