Bitcoin price (BTC) dropped another 3.07% on February. 25, marking the second day of losses as global equities markets sharply corrected on fears of the Coronavirus spreading to more countries.

Crypto market daily price chart. Source: Coin360

Crypto market daily cost chart. Source: Coin360

Tweezer tops show supports becoming levels of resistance

The toll dropped below what analysts have labeled as crucial support at $9,450-$9,400 to a new 3-calendar week low at $nine,281. Like to the Feb. 18-nineteen drop from $10,250 to $ix,478, today'southward pullback was also preceded past a tweezer top candlestick design on the daily timeframe.

At the time of writing, Bitcoin toll is finding back up nigh the 50-twenty-four hour period moving average and the volume profile visible range (VPVR) high volume node at $ix,430-$9,319.

BTC USDT daily chart. Source: TradingView

BTC USDT daily nautical chart. Source: TradingView

If the toll fails to hold this level then a new lower low below the Feb.4 toll of $9,089 is possible. Below $9,089, the next level of back up can be plant at the 200-day moving average that is also aligned with a high volume VPVR node at $8,800.

Such a motility would erase approximately sixteen% of the 21% gain Bitcoin has made since rising from $8,327 to achieve a local high at $10,500 on Feb. 13.

Key $ix.4K support broke only traders anticipate a bounce at $9,350

BTC USDT 6-hour chart. Source: TradingView

BTC USDT vi-hour chart. Source: TradingView

In the shorter time frame, traders will notation that the relative strength index (RSI) has nearly dropped to oversold territory and appears to exist reversing upward at 35.5. This would suggest that $9,335 could be a point of reversal and the price previously held at the high volume VPVR node at the $ix,350-$9,277 zones.

The price of Bitcoin also revisited this zone with 2 previous bounces at $ix,335 on Feb. 25 and February. 19. Below $8,800, the state of affairs becomes a bit trickier merely the price appears to be supported at $8,200 and $8,000.

Coronavirus fears and the overbought conditions weigh on Bitcoin toll

Despite the vii.25% pullback of the last two days, it is however to be determined whether the downside movement is technical or primarily driven by the correction in traditional markets which is fueled by Coronavirus fears.

While a few analysts from crypto-Twitter have run for the hills and shouted that a sharp surly reversal that will break the current uptrend is spring to happen whatever day now, other analysts like Cointelegraph correspondent Micheal Van De Poppe believe that Bitcoin and altcoins had become overbought after the recent multi-calendar week rally which saw Bitcoin price motion from $vi,400 to $10,500.

Traders looking to buy lower with 76 days nevertheless left until the halving

Van De Poppe has long believed that a 10% or larger pullback was needed in order for cryptocurrencies to retest their underlying supports equally traders book profits then set for the next leg up.

Thus, it is his view that the electric current uptrend remains intact despite the short-term surly conditions, which previous reports past Cointelegraph advise is the result of crypto whales capitalizing on the high number of leveraged longs and overbought conditions within the market.

During a recent conversation with Delphi Digital CFA Kevin Kelly, the analyst explained that:

"This market is nevertheless highly speculative and conditions can turn on a dime, but taking a step back we are beginning to see some maturation as the level of sophistication across investors and traders increases."

Notable Crypto Asset YTD Returns (USD). Source: Delphi Digital

Notable Crypto Nugget YTD Returns (USD). Source: Delphi Digital

Kelly referred to the nautical chart in a higher place which shows the wide distribution of gains amidst crypto avails since the start of 2022 and explained:

"The latest rally in the crypto market place is quite a bit different from what we saw terminal year when BTC led almost culling crypto avails. The shift in leadership this year has favored other big and mid-cap names, many of which drastically underperformed BTC over the final year."

Cointelegraph contributor and crypto trader contributor Scott Melker besides urged investors to remember that:

"The avails that are overbought and have had the largest contempo gains are the ones that have the furthest to fall before finding meaningful support."

Taking a wider view of the market, nosotros can encounter that the price remains pinned between $9,350 and $9,800 and each previous level of support is at present functioning as a level of resistance. At the fourth dimension of writing, the absence of purchasing volume shows that traders are non viewing the current drop as a 'purchase the dip' opportunity.

In the event of an oversold bounciness does occur, Bitcoin price could ascension the Bollinger Ring moving average which is currently located at $nine,666 but it's also possible that the previous support at $nine,650 volition function every bit a tough level of resistance.

The views and opinions expressed here are solely those of the writer and do non necessarily reflect the views of Cointelegraph. Every investment and trading move involves adventure. You should conduct your ain enquiry when making a decision.