Bitcoin has ignored all the negative news of the last two months and has held its position above the 10,000 level due to growing interest from buyers even at this level, traders have seen an uptrend in price earlier this week But the current values are showing more opportunities for swing traders.
Bullish start of the week
At the beginning of this week, Bitcoin started an uptrend and entered a bullish breakout at 11,725 after last week's news from Square bought 4,709 BTC and the price returned to a mild normal range thereafter.
After facing many rejections at 11,500 and the news that OKEx stops withdrawals, all while the CEO cooperates, the Chinese authorities are conducting an investigation to balance the price of Bitcoin and investor sentiments,
Reason for Bitcoin's bullish momentum
Bitcoin's bullish momentum is caused by the wave of negative news about the retracement of most Altcoin prices to the red and disappearance. Looking at the time frame signals showing that losing 11,200 can cause the price to reset to 11,100, this level resides in the VPVR gap that can usher in a further drop to 10,900.
According to Cointelegraph, Micheal van de Poppe explains it as, "Significant support at $ 11,000 is now a must-have level to resume bullish momentum, which may struggle to clear current levels as renewed closures from the coronavirus are scaring investors."
Even these current trading actions are disappointing bulls who want to see Bitcoin at 12,000. Looking in-depth at the situation shows multiple factors that affect the price of Bitcoin. Even in a bullish state traders earn more because there are always buyers who are more than the sellers in the market who make the trend of harassment a favorite of traders. About crypto trader's desire, you can learn more here.
Will Bitcoin faces bearish
There are so many factors that affect the behavior of the market, including bitcoin, such as fund speculators, various types of money management strategies, increasing the position by 4% to 14,100 when borrowing money, these things show less in August, and this does not primarily imply bearish statistics. of price, like Petrick Heusser, "Cash and carry" It means that the best strategy is to buy the asset on the spot and at the same time take a short position in the market and then trade at a good spot price.
Effects of Covid-19 on Bitcoin
Recent BTC allocations by MicroStrategy, Square, and Stone Ridge are positive, especially considering the current economic uncertainties that exist as a result of the COVID-19 pandemic.
Volumes are increasing again on multiple BTC exchanges and on Friday a report from Cointelegraph shows that the Bakkt Bitcoin exchange reached a new record for BTC delivery.
Will the second wave of pandemic affect Bitcoin?
The answer to this question is no!
Because practically in this respect the effect on Bitcoin will be zero.
Institutional money has been the double influence of the former, which will enjoy unprecedented support from governments by bailing out debits through the purchase of shares and, on the other hand, funds like Grayscale Bitcoin will see an increase in volumes.
Next days and Bitcoin
All markets are driven by consumer demand making it a bull market at the same time that retailers and small investors are reshaping their strategy into things other than cryptocurrencies.
Now they are more and more interested in assets over time, inflation and exposed assets are the motivation to enter the market and that can also be used across borders.
There are different opinions from different experts based on the observations of a famous and well-known expert Alex Althausen, CEO StormGain, a cryptocurrency exchange, and trading platform, says "Today, we see a 66% correlation of the price of Bitcoin with the S&P 500, but we have to consider that it is the bull market. If, or when, the price of traditional assets like stocks falls due to the second wave of COVID-19, investors will more actively use protective assets like gold and Bitcoin. "
Mostly Bitcoin consider as a safe asset due to its easy availability and access than other, you can start with a very little investment without accredited investors or rules that make Bitcoin attractive among all asset for a normal consumer.