Bitcoin Nears ‘Monster Move’ — Price to Hit $10.5K or $7K Next?
Bitcoin’s daily volatility is reaching monthly lows. Since the onslaught at $10K, traders have been in fear of what’s to come. At current levels, it looks both possible for Bitcoin to break above and reach highs of $10,500 or break below $9K and flatten at $8,500. While most are looking for a push to $10K and beyond, there are cold feet that this or the rejection at $9,800 could lead to another major sell-off.
During the last rejection which happened after crossing $10K, Bitcoin dropped to $9,200 in hours and dipped below $9K in the days that followed before finally regaining strength. Some analysts have stated that this was just a warning and the next move downwards will lead to $7K.
Despite recent events being blamed on global markets, Bitcoin investors have been taking a more conservative approach. For starters, the daily volume has slumped to lows of under $25 Billion.
Also, since it was one of the many countless times in the year that Bitcoin has climbed above $10K only to be rejected in hours or days that followed, some investors think that Bitcoin has set a $10K top and have lost confidence in the asset reaching highs of $12K and beyond in the short or mid-term.
For the last few days though, Bitcoin has found strength in its local range and is clinging on $9,500. As it moves sideways, it is signaling another major move. Will it try and top $10K again or are investors going to dump some more?
Bitcoin Tied To Major Events
Well, it seems that Bitcoin, the hedge against traditional assets is not immune to these assets after all. The last major move was triggered by equities, when they dumped, so did Bitcoin and when they recovered, the same was true for Bitcoin. Since then, both the traditional markets and Bitcoin have been tranquil.
The world is afraid of a second wave of the pandemic outbreak. Investors are keenly watching if there will be a resurgence as economies begin to open. If there is, they could close again meaning that presumed bottoms could be broken. Fortunately, for the U.S, President Trump has stated he will not be closing the economy again even if there is a second wave.
Bitcoin looks tied to equities and major events on COVID-19 and will hence continue to affect Bitcoin’s price. For most investors, a break from the correlation is the first ideal step but to do so, a positive trigger is needed. Recently, there has been great support from billionaires and institutional investments. This has served in the growing interest in Bitcoin.
Source: zycrypto.com
