Stocks Rise as Bitcoin Falls, Pandemic Fear.
The Dow Jones Industrial Average was up just 109 points, or 0.4% after being up as much as 461.42 points, or 1.7%, earlier in the session. The 30-stock average briefly turned negative around midday.
The S&P 500 was up just 0.4% after rallying more than 1% to start off Wednesday’s session. The Nasdaq Composite remained 0.6% higher after rising 2%. Stocks plunged for a second day on Tuesday, with the Dow tumbling 879 points, bringing its two-day losses to nearly 1,900 points.
The S&P 500 wiped out a whopping $1.7 trillion in just two sessions. The equity benchmark nosedived 6.3% since Monday, suffering its biggest two-day drop since August 2015.
The 10-year Treasury yield slid back to 1.325% after hovering around 1.36% earlier in the day. The benchmark rate fell to an all-time low on Tuesday. The earlier bounce in yields eased concerns slightly that the coronavirus would tip the globe into a recession.
Bitcoin Erases 38% of the 2020 Price Rally as Bears Gain Strength
Bitcoin's daily and 12-hour charts indicate the path of least resistance is to the downside.
A break below immediate support at $9,074 (Feb. 4 low) would expose the support range of $8,700-$8,600, under which the focus would shift to $8,300 (head-and-shoulders breakdown target).
A corrective bounce to resistance levels at $9,230 and $9,400 may be seen before a potential drop below $9,000, as the hourly chart is reporting seller exhaustion.
A close above $10,028 (Monday's high) is needed to turn the tide in favor of the bulls.
Bitcoin (BTC) dropped to three-week lows early Wednesday, erasing a significant portion of this year’s price rally.
The top cryptocurrency by market cap slipped to $9,095 at 08:30 GMT to hit the lowest level since Feb. 4, according to CoinDesk’s Bitcoin’s Price Index (BPI).
With the drop to multi-week lows, bitcoin has retraced nearly 38 percent of the rise from $6,850 to $10,500 seen in the six weeks to Feb. 13.
The rally may continue to unravel as the bears have been looking stronger in the last 24 hours.
The cryptocurrency fell below $9,400 during Tuesday’s U.S. trading hours, confirming a major bearish reversal pattern on technical charts. Additionally, sellers have breached the widely tracked 50-day moving average (MA) support for the first time since Jan. 3