Bitcoin’s pullback has been sharp. Xbit is waiting on the sidelines and hasn’t taken a position since the Xbit Strategy Team’s last publication.

Even though we’ve given up a lot of ground and touched $8,528, Bitcoin is still +129% over one year. I’d also like to draw your attention to the baseline of the three-day Ichimoku chart which is still intact as the next line of support.

What is making the strategy team most bullish is the capitulation and bearish sentiment of many prominent cryptocurrency analysts. Xbit loves bearish sentiment.

Corrections are normal in a healthy market. Nothing goes straight up. Unless something unexpected happens, we should find a bottom soon and we expect to take a long position after confirming the rebound.

If things go sideways, we expect the next line of support around $8,230-8,300.

And finally …  Pelple are debating the effectiveness of bitcoin as a hedge agains the coronavirus.  We think there is very little correlation to the price of bitcoin.  Keep your eye on the news, but it’s likely bitcoin prices will rise in the near future.