In brief:
- Bitcoin has lost the $9,300 support zone as the US Stock market experiences a hefty correction.
- The stock market is reacting to fears of a possible second wave of the Coronavirus in the United States and another 1.5 Million Americans filing for Unemployment.
- BTC dipping as the Stock market fumbles is further evidence of a correlation to the traditional markets and institutional investors entering the crypto-markets.
Bitcoin is once again in the red as the King of Crypto has dipped below $9,300 and is valued at $9,250 at the time of writing this. The dip by BTC comes amidst news of the US Stock market experiencing a hefty correction due to news of a possible second wave of the Coronavirus in the United States. The US has recorded over 2 Million confirmed cases of COVID19 with numbers continually increasing by the day.
Also to note, is that 1.5 million Americans filed for unemployment as the country continues to cope with riots and protests related to the unfortunate death of George Flloyd.
Bitcoin Losing $9,300 Opens the Doors to Sub $9K
The sudden drop of Bitcoin below the very crucial $9,300 support zone opens the doors to a sub $9,000 BTC. The King of Crypto’s push above $10,000 has been rejected several times and the dip in the Stock market was the final blow to the $9,300 support zone.
Only time will tell as to whether the support zones at $9,150 and $9,050 will hold before Bitcoin loses $9,000.
Further checking the daily BTC/USDT chart courtesy of Tradingview.com, the following can be observed.
- Bitcoin’s 50-day moving average (white) is acting as short term support at approximately $9,150.
- The 100-day and 200-day moving averages provide additional support of around $8,000.
- Trade volume is in the red with the MACD and MFI also showing signs of a bearish few days ahead for Bitcoin.
As with all technical analyses of Bitcoin, traders and investors are advised to use risk management techniques as well as stop losses to protect trading capital.
Bitcoin’s Correlation with the Stock Market Proves Institutional Players in Crypto
Over the past few months, the correlation of Bitcoin to the stock market has been a subject of debate. The conversation hit a fever pitch during the Coronavirus crash of mid-March when Bitcoin was highly correlated to the S&P 500. Today’s BTC dip as the US stock markets went down, is further evidence of this correlation and further points to more institutional players in the crypto-space.
Bitcoin reacting to global financial news as well as its high volatility during the opening and closing of major stock markets in the United States is proof that the institutional players are actually knee dip in the BTC market action.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.
