Bitcoin's price soared on March 10, climbing to $ 8,150 before facing resistance that plunged prices to $ 7,730.
The S&P 500 and Dow followed the same trajectory by speeding up at the opening before a strong pullback in afternoon trading.
“Unfortunately, the downtrend is dominating until now"
Both indices increased when it was almost time to close. This may be due to the publication of more detailed information about President Donald Trump's proposal to strengthen the US economy by expanding relief funds for key industries and payroll taxes to support workers. due to negative effects of COVID-19.
The S&P 500 ended the day with a 5.17% increase and the Dow recovered more than half of the 9/3's losses by increasing 1,167 points. Interestingly, Bitcoin price also made its second attempt at $ 8,000, climbing to the top of $ 7,965 at the time the US market closed.
Despite strong performance, economist and chief economist Mohammed El-Erian of Allianz to speak with CNBC that:
“I don't think BTC has created lows, but it will be extremely fluctuations. Tunfortunately was downtrend reigning until now. ".
El-Erian has repeatedly warned investors to oppose buying dip in the current market and the continuous spread of Corona virus in Europe and the US is clearly weighing on their psychology.
Daily chart of Dow Futures, S&P 500 Futures, BTC/USD | Source: TradingView
This afternoon, the Dow futures plunged more than 450 points and the S&P 500 futures fell 2%, showing that the opening situation on Wednesday will see the market plummet again.
Bitcoin and yellow
Cryptocurrency investors argue that Bitcoin acts as a store of value and a hedge against volatility of traditional markets that is watching closely to see how digital assets perform. in the current correction phase?
BTC/USD and yellow | Source: Skew.com
Over the past two weeks, crypto has been in tandem with the price action of the stock market but data from Skew shows that Bitcoin's profits are still rising 9.45% in 2020 while the S&P 500 is down 10.79%.
The annual profit of tCurrent macro assets (%) | Source: Skew.com
For those who believe that Bitcoin is “digital gold,” the data shows two asynchronous assets on the monthly time frame but both Bitcoin and gold are up 9.45% and 8.82% in 2020. Thus, despite the fact that the Bitcoin price has dropped by 14.85% since March 7, some traders still view this asset as an anti-volatility barrier.
Unsurprisingly, the famous Bitcoin critic Peter Schiff seemed to believe the opposite, and he looked at the recent poor performance of Bitcoin through tweets:
Bitcoin is no longer a non-correlated asset. Equally positively correlated to risk assets like equities, and negatively correlated to safe-haven assets like #gold. When risk assets go down, #Bitcoin goes down more. But when risk assets go up, Bitcoin goes up less. No value in that!
– Peter Schiff (@PeterSchiff) March 10, 2020
“Bitcoin is no longer an unrelated asset. It is positively correlated with risky assets such as stocks and negatively correlated with safe-haven assets like gold. When the property is at risk reduction, Bitcoin will fall even more. But when riskier assets increase, Bitcoin increases less. There is no value in that!"
Short-term bullish view
Currently, Bitcoin is consolidating near the 61.8% Fib loss ($ 7,978). As mentioned in a previous analysis, if the price can break above the $ 8,120 level and turn the $ 8,200 resistance level into support, the volume profile display range (VPVR) suggests that the price may rise. as high as $ 8,600 by tapping the volume gap from $ 8,100 to $ 8,600 before meeting resistance.
BTC chart/USDT 6 o'clock | Source: TradingView
On the 6-hour time frame, the moving average convergence divergence (MACD) chart continued to increase to near zero as buying volume increased and Bitcoin formed a higher low.
Ultimately, the act of raising prices will depend on buying volume and buyers won't step in until the traditional market improves sustainably or the Corona virus is curbed.
Although the MACD has flattened out and starts to curve towards the signal line. High volume VPVR nodes from $ 8,600 to $ 8,820 match the descending trendline and prevent high volume breakouts. Therefore, Bitcoin can be quite hard to make a daily higher high above $ 8,750.
If the price rises to $ 8,500 – $ 8,600, traders will probably open short positions at this level because they are aware of the resistance right above it and actually $ 8,500 is an important price for Bitcoin.
You can see the price of BTC here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Cointelegraph
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