As equities markets across the earth go along to mail hefty losses, Bitcoin (BTC) traders fought to keep the digital asset above the $vii,800 support. Less than an hour ago the Dow closed down more than i,400 points and the S&P 500 posted a 4.89% loss as the World Health Organization officially announced that the Coronavirus is now classified every bit a pandemic.

The WHO annunciation was followed by an ominous statement issued before the U.s. Congress by Dr. Anthony Due south. Fauci, the director of the National Found of Allergy and Infectious Diseases.

According to Dr. Fauci, the number of COVID-19 viral infections will continue to grow due to insufficient containment measures and contract tracing. Dr. Fauci told lawmakers that "it's going to get worse" and he emphasized that:

"How much worse we'll go will depend on our power to do 2 things: to comprise the influx of people who are infected coming from the outside, and the ability to incorporate and mitigate within our own land."

Crypto market daily price chart. Source: Coin360

Crypto market daily price chart. Source: Coin360

Given the clear correlation betwixt Bitcoin'due south price action and traditional markets, traders like Cointelegraph correspondent Micheal van de Poppe look Bitcoin to hover in the $7,600 to $7,300 zone for the foreseeable hereafter until global markets prove some sustained comeback.

In the result that Bitcoin fails to hold $7,300, van de Poppe believes that traders volition shift their focus back to $6,800 and $6,400.

BTC USDT daily chart. Source: TradingView​​​​​​​

BTC USDT daily nautical chart. Source: TradingView

The daily chart shows $7,420 as a key back up level for Bitcoin to hold. At the time of publishing the relative strength index is dipping into oversold territory and on the shorter timeframe nosotros can see the moving boilerplate convergence divergence (MACD) and relative strength index (RSI) attempting an oversold bounce but it's clear that traders are reluctant to buy with sustained strength as Bitcoin continues to brand lower highs and lower lows.

As mentioned in a previous analysis, a high volume surge could propel the price to $8,500-$8,600 every bit there is a large gap on the volume profile visible range only for the fourth dimension being, traders have no preference for risk-on avails.

For the time being, traders are advised to do caution when engaging with oversold bounces as the electric current bounce shows a surge in buy volume petty modify in breaking the pattern of lower highs on the four-hour timeframe.

BTC USDT 4-hour chart. Source: TradingView​​​​​​​

BTC USDT 4-hr nautical chart. Source: TradingView

A positive turn of events would entail Bitcoin cost either continuing to consolidate effectually $vii,800 or the cost climbing back above the 61.eight% Fibonacci retracement level ($7,978) and closing above $8,100.

Crypto Fear & Greed Index. Source: alternative.me

Crypto Fear & Greed Index. Source: alternative.me

The Crypto Fear & Greed Alphabetize is even so at 17, a level representing farthermost fearfulness on part of investors. In the by investors have utilized the sentiment metric as a signal to countertrade the trend.

While it is likely that investors are feeling tempted to open up longs off this current dip, the dubiety brought nearly by the Coronavirus has created something of a black swan issue that is suppressing investors' appetite for take chances.

Another concern on investors' minds is the fact that Bitcoin cost is fast approaching the logarithmic trendline support. It'southward a bit premature to speculate what the effect of dropping below the logarithmic growth trendline would be only it worth noting that such an occurrence has even so to occur since Bitcoin's inception.

BTC USD daily chart. Source: TradingView​​​​​​​

BTC USD daily chart. Source: TradingView

Shortly later equities markets closed, crypto trader Philip Swift posted the above nautical chart and tweeted:

"Bitcoin price merely briefly pierced through the log growth bend lower purlieus on a day where it actually felt like there was a lot of fear/hysteria in the markets.'China bans Bitcoin' but wasn't going to cut information technology this time effectually! Now let'due south see if information technology tin hold!"

The views and opinions expressed hither are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should deport your ain research when making a conclusion.