Will the Bitcoin remain in the five-digit USD range?
After more than a month, the bears are pushing the market leader again towards the 10000 USD mark. The mark not only represents an important support line, it is also considered a psychological limit. That’s why the focus of the traders in these hours is on the important area. A renewed dip could initiate a new downtrend and tie Bitcoin to the traditional markets once again. But one by one…
Bitcoin course current
At the time of this article, the No.1 crypto currency is at a rate of 10235 USD, which is a daily minus of 0.65%. The bulls could not stand up to the bears after the rebound at the 12000 USD mark and had to watch as all the support went down one by one. The trend line at 10200 USD represents the last support before the magic barrier. From a bullish perspective, the next resistances are now at 10400 USD and 10600 USD.
The beginning of a new downtrend?
Should the BTC dip into the four-digit USD range, this could herald the start of a new downtrend. Currently, the market leader is roughly in the range of the 100-day average (approx. 10250 USD). From this perspective, there is therefore no reason to believe that the current downtrend is the beginning of a crisis. However, it is noticeable that the No.1 crypto currency has been correlating more strongly with the traditional markets again since Thursday.
Does the BTC correlate more strongly with the traditional markets again?
A higher correlation and increasing volatility form an explosive mixture. On the one hand, the Down Jones went down at the end of the week, on the other hand many investors are unsettled by the high fluctuations on the crypto market. After the Halving the Bitcoin seemed clearly more stable, the Bitcoin presented itself in the Corona crisis as reliable Store OF value. On Friday, the “digital gold” plunged south in 24 hours by over 1000 USD. As a result, many “weak hands” sold off their stocks.
What do the Altcoins do?
The Altcoins are experiencing a pitch-black weekend with heavy price drops. Ethereum has to accept a fall below the important 400 USD mark shortly after reaching its high for the year. On Sunday, the Smart Contract-Coin stands at a price of 349 USD. Even further back, countless alts have to put up with double-digit price losses. At the time of this article the BTC Dominance Index is at a value of 57.7 %. According to this, the first mover can regain important market shares this week, while the alternative assets are experiencing a real debacle.