Bitcoin defends important support area
The bulls are fighting at the 11400 USD trendline to maintain a strong base for a new attack on the year’s high. However, the S&P 500 could pull the first mover down in the coming hours. Many investors are afraid of overheating after the long rally of the past few weeks. On the crypto-market, after the turbulent previous days, there is currently little to suggest a new consolidation phase. We take a look at the possible scenarios.
Bitcoin price current
At the time of this article, the No.1 crypto currency is at a rate of 11411 USD, which corresponds to a daily loss of 0.79%. According to this, the bulls are defying the bears at the 11400 USD trendline. From a bullish perspective, the next resistances are still at 11600 USD and 11800 USD. Shortly behind them, the stubborn 12000 USD barrier is piling up. Again and again the bulls had to take hard ricochets here in September. These were often related to the low daily volume. Currently, this is a solid USD 23 billion.
What is the next step?
The further course of the share price will be influenced by the developments on Wall Street. In recent weeks, the S&P 500 has increasingly recovered from the consequences of the coronavirus pandemic. Despite several setbacks (rising infection figures, tug-of-war over stimulus checks…) the famous stock index remained above the 3500 point mark on Tuesday.
Option 1: Downtrend Incoming
Should the traditional markets confirm the afternoon’s downward trend, this could have a direct impact on the leading crypto currency. Some analysts already see the “digital gold” as “overpriced”. Hardly any other asset has survived the coronavirus pandemic as well as Bitcoin. In a rush the crypto currencies recovered from the setbacks in March. However, the crisis has still not been overcome.
Option 2: Bitcoin pumps
After the last stock price rally, the mainstream media are increasingly reporting on the block-chain market and more and more institutions are integrating solutions that do not require a “third party”. Square’s 50 million investment demonstrates the great interest of financial service providers and new use cases are in the starting blocks. All these developments could play into the bull’s eye in the long run. From a chartist point of view, after reaching the 30-day high, the first thing that matters is resistance at USD 11400 and the major stock indices.
Possibility 3: correction and consolidation
For weeks the BTC settled in the range between USD 10000 and USD 11000. On the downside, the magic line provided reliable support, while the low volatility and small trading volume caused countless ricochets at the $11000 trend line. After the recent bull run, the question is whether the bulls can hold this level. Do we see the Bitcoin again for weeks in the range between $11000 and $12000?
Regardless of the potential chart development, Bitcoin is approaching the important 60% mark in terms of dominance. Currently, the BTC Dominance Index is at 58.6 %. Thus, hopes for an upcoming Altcoin Season are dwindling. As a result, the alternative assets must hope for support from the first mover.
What are the Altcoins doing?
On Wednesday, only a few Altcoins emerge from the shadow of the No.1 crypto currency. Bitcoin Cash (+ 0.76%), Polkadot (+ 0.31%) and Monero (+ 1.51%) are the only coins to show gains in the top 20. Further down the line, DeFi-Coins Aave (+ 3.69 %) attracts attention.