The No.1 crypto currency can cushion Saturday’s price slide and rely on an important support area. Nevertheless, investors are looking towards Wall Street with concern. The panic ahead of a second wave of coronavirus is literally palpable and the Fed’s pessimistic forecast already caused enormous price drops on Thursday.
Bitcoin consolidates on Sunday
At the time of writing, the market leader is quoted at USD 9426, which is a daily loss of 0.30%. After bouncing back at the magic USD 10000 hurdle, the bears pushed the price down on Saturday. From a bullish perspective, the trend line at $9400 appears to be a reliable support. On the upside, the lines at around $9600 and $9800 are the biggest resistances before the five-digit USD area.
What is happening on Wall Street?
This week it became clear how high the correlation between the Bitcoin and traditional markets is. While the halving event strengthens Bitcoin as a crisis-proof “store of value,” the digital currency is far from being an independent asset. With a market cap of approximately USD 174 billion, capitalisation remains very low compared to traditional markets. Bitcoin must therefore first grow in order to achieve a sustainable encapsulation.
On the way to an independent “Store of Value”
Futures contracts have invigorated the crypto-space and more and more major investors are flooding the market. A long-term breach of the USD 10000 mark could bring the first mover further into the focus of the mainstream. An inflation rate of 1.8%, limited reserves and barrier-free transactions are adding lasting value to the digital currency portfolio. But the high volatility rate is deterring many investors.
What are the Altcoins doing?
A BTC dominance value of 64.9 % illustrates the current situation. The alternative assets follow the BTC also on Sunday. Bitcoin SV (+ 0.41 %), Crypto.com Coin (+ 3.25 %) and DigiByte (+ 4.68 %) can show at least smaller price gains, while most Altcoins have to record price losses in the single-digit percentage range.