Veröffentlicht: 22.08.2020

Patience is a virtue: BTC fights at 11600 USD

In which direction does the Bitcoin move?

No easy week for the market leader! After reaching a new high for the year, Bitcoin once again falls below the important USD 12000 mark. This means that there is now a tug-of-war between the bears and the bulls. But what is holding investors back at the moment? Is it the fear of volatility or is the Corona pandemic casting its shadow over the crypto space?

Bitcoin falls on Saturday

The No.1 crypto currency is struggling for an important support area at the trend line at 11600 USD. This would be a good basis for a new attack on the 12000 USD. However, the bears have been exerting enormous pressure on the Bitcoin for hours. It seems as if a fast crossing of the USD 12000 mark becomes less likely with each bounce. Is investor confidence waning?

The time of the whales

A 24-hour volume of more than USD 100 billion shows that traders are by no means giving the crypto market the cold shoulder. Rather, whales can be suspected behind the fierce dumps. The term “whale” is an integral part of the vocabulary of crypto experts. These are the big players in the crypto industry, who have access to huge whale assets. As a rule, many whales try to operate covertly, and in consultation with the major stock exchanges, in order to remain undetected and not to influence the BTC price. Nevertheless, so-called whale watchers repeatedly uncover huge whale movements. The largest known Bitcoin whales are the large BTC investment funds such as Pantera Capital or Falcon Global Capital.

Corona pandemic burdens the financial markets

Another reason could be the high volatility of the crypto market. This could deter insecure investors right now. After the US economic performance suffered a historic setback of about 33%, unsettled investors pushed the gold price to a new all-time high. Shortly thereafter, the No.1 crypto currency was able to break away from the traditional markets and reach a new annual high. Although Bitcoin, like gold, has many of the characteristics of a crisis-resistant store of value, the barrier for risk-averse investors is probably still too high. In addition, the US dollar has been stable for weeks and Wall Street has also been able to recover from the sharp declines.

Consolidation Phase?

Another possibility is that Bitcoin has become “more mature” after the third halving. We are seeing longer consolidation phases and price breakouts in the double-digit percentage range are now a real rarity. So it is quite possible that the current market behavior is an overdue correction.

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