Bulls under pressure
The market leader is also clinging to the traditional markets with all his might on Friday. While the USA has to report another record high in new coronavirus infections, the Nasdaq reaches new record levels. Are the consequences of the corona crisis already fully fed in or is a global economic crisis looming? We take a look at current events.
Bitcoin price current
The No.1 crypto currency continues to hold above the important USD 9000 mark. At the time of this article, the BTC is trading at USD 9227, which corresponds to a daily loss of 0.26 %. Once again, the bulls have to rely on the trend line at USD 9200, where the last support lies before the USD 9000 mark. From a bullish perspective, a rising trading volume (USD 16.6 billion) should provide a good mood. The next resistances are at 9400 USD and 9600 USD. However, as the BTC continues to climb against the major stock indices, hopes of a near-term move into the five-digit USD range are dwindling by the day.
Consolidation phase: no encapsulation in sight
At first glance, it seems as if silence has returned to the turbulent crypto-space. For months, the No.1 crypto currency has been trading in the range between USD 9000 and USD 10000. It is a strange “post-halving” period. Very few experts had predicted such a sideways movement before the third BTC Halving Event. Of course, the reasons for this lie in the high correlation to traditional markets. After all, the BTC is not yet a crisis-stable “Store of Value”, but the foundation is undoubtedly there. The low inflation rate (1.8 %), the limited reserves and the fast transactions clearly speak for the first mover. But there is a lack of capital. With a market capitalization of “only” USD 270bn, the block-chain sector remains a smaller marginal niche for now.
The fear of the economic crisis
Alarming news from the USA: The number of new corona infections is also increasing on Friday. Worldwide, the WHO reports 228102 new cases, never before has this figure been higher. The fear of the second wave is turning into a bitter reality and many experts predict devastating consequences for the global economy. In March one could observe how the high correlation can affect the BTC price when the major stock indices crash. At that time, Wall Street had to suspend trading several times and Bitcoin subsequently plunged below the USD 5000 mark.
What do the Altcoins do?
Most Altcoins consolidate on Friday. Binance Coin (+ 2.36 %), Chainlink (+ 2.69 %) and Cosmos (+ 8.69 %) can record smaller price gains in the top 40. The Bitcoin Dominance Index is currently still at 62.8 %.