Downtrend to the weekend
Most crypto currencies suffer moderate losses on Saturday. Nevertheless, we can look back on a positive week. Bitcoin continues to hold a level above the important USD 6000 mark, and the traditional markets seem to be gradually recovering. However, this impression could be deceptive. We take a look at the most important events.
Bitcoin chart in detail
At the time of this article, the BTC is quoted at USD 6216. This corresponds to a daily loss of just under 7 %. For days the “digital gold” fluctuated in the range between USD 6400 and USD 6800. This stability could provide more confidence among investors. Nevertheless, the high Bitcoin Volatility Index of about 10% should not be ignored. As soon as FUD (fear, uncertainty and doubt) or FOMO (fear of missing out) hit the market, explosive price outbreaks could occur. Two scenarios are conceivable.
Scenario A: The bears return
From a bearish point of view, the BTC is currently supported by the support area at 6200 USD. After that, the $6000 mark would be the next bigger trend line that the bears will hit. Further down would be support at $5700 and $5500. Currently the Bitcoin is experiencing a premiere. During the last financial crisis in 2008, Satoshi Nakamoto had not yet published his brilliant white paper. Therefore there are no reference values.
Does the BTC follow the traditional markets?
In the early days of the coronavirus pandemic, there was initially much to suggest that Bitcoin correlates with the major stock markets. Within a few hours the chart dipped to a value of about 5000 USD and nobody wanted to talk about a crisis-proof “store of value” anymore. In the past 10 days, however, a contrasting pattern could be observed in some cases. Perhaps the “digital gold” will advance to a “safe haven” in the coming weeks after all.
Scenario B: The cops take the wheel
From a bullish perspective, the USD 6400 mark now represents the next resistance level. Further up, the hurdles at 6600 USD and 6800 USD follow. This is the area where the bulls have been failing more frequently in the past few days. Breaking through this level would create the best conditions for a sustained bull market.
Bitcoin Dominance Index remains high
The Bitcoin Dominance Index at the time of this article is 65.2%. In the past 24 hours, the Altcoins were thus able to regain about 1 percentage point. However, this does not change the market situation much. The Bitcoin dominates and the Altcoins follow at every turn, with rare exceptions. Bitcoin SV, with a daily loss of just under 11%, is the strongest in the Top 10.