Since the start of the week Bitcoin (BTC) toll has dropped more than than $38 billion as traditional markets likewise fell by more than 10%. Equally reported throughout mainstream media, this week's collapse of the largest equities markets is the worst correction since the 2008 meltdown and more than $3.eight trillion in value was erased as daily news of the Coronavirus spreading throughout the earth dominated headlines.

Investors are now wondering if the rally which propelled Bitcoin toll from $6,400 to $10,500 is over and as the end of the month approaches, Bitcoin is on course to tape a monthly loss in February for the first time in 6 years.

On Fri Bitcoin price appeared to be on the 2d day of finding stability in the $8,500 to $8,750 zone, whereas traditional markets continued to fall. The freefall among altcoins also appears to take stopped and Chainlink (LINK), Huobi Token (HT), Tezos (XTZ) being standout performers.

Crypto market daily price chart

Crypto market daily cost chart. Source: Coin360

At the time of writing, Bitcoin price is forming college lows and trading to a higher place the high volume node of the VPVR at $8,750. If the price tin can sustain above $8,750, traders may brainstorm to feel more confident about a bottom having been reached at $8,432 and as they step in to open long positions the price could quickly ascension through the volume gap in the VPVR from $8,870-$9123 where the 20-MA of the Bollinger Band indicator currently resides.

Next calendar week a high volume breakout driven by improving equities markets or some positive news related to the Coronavirus could meet buyers press the price in a higher place the $9,100 level to $9,300.

BTC USDT 6-hour chart

BTC USDT 6-hr chart. Source: TradingView

The shorter time frame also shows the moving average convergence difference on the verge of pulling higher up the signal line and as balderdash volume increases another positive is the MACD histogram bars shortening and cartoon closer to 0 on the indicator. The relative forcefulness index (RSI) has also bounced from oversold territory, currently registering 37.

As mentioned in a previous analysis, trading book will be the tell on whether a bullish reversal is in the making or if solar day traders are just trading support levels and oversold bounces to pocketbook quick profits.

BTC USDT daily chart

BTC USDT daily chart. Source: TradingView

Over the short-term, information technology would be encouraging to see the toll cross above the Bollinger Band moving average to repossess $ix,100 in order to consolidate in the $ix,100 to $ix,400 range before having a go at $9,500.

The $8,500 support also lines upward with the 128-twenty-four hour period moving average and losing this support would raise some concern every bit the cost history shows Bitcoin price taking a turn for the worse when below the 128-MA.

If the price were to driblet below $eight,500 traders might anticipate a bounce at $viii,000 where the 61.8% Fibonacci retracement level is, and below this, there is back up at $7,400 which is slightly the 78.6% Fibonacci retracement.

At the moment the marketplace is notwithstanding soft and while indicators like the MACD and RSI are providing some positive symbols, the state of traditional markets and the state of affairs with Coronavirus could proceed to negatively impact crypto prices next week.

The Crypto Fright and Greed Index, a popular indicator used to gauge investor sentiment in the sector, currently reads 'Fear' at 38.

Crypto Fear & Greed Index

Crypto Fear & Greed Index. Source: Culling.me

This shows that investors remain bearish near the curt-term price activity within the crypto market only it'southward a well-known fact that many traders countertrade the signal past buying Bitcoin when the indicator is extremely bearish and selling when it is overwhelmingly bullish.

Patently, every investor should do their own research before purchasing crypto-assets, especially with the electric current state of the marketplace, but it besides seems likely that investors will soon view Bitcoin prices in the $8,500 to $7,400 equally an opportunity to open long positions. More adventure-balky traders will probably wait to buy a breakout in a higher place $ix,400-$nine,500.

The views and opinions expressed hither are solely those of the author and exercise not necessarily reflect the views of Cointelegraph. Every investment and trading motility involves risk. You should conduct your ain research when making a decision.