Cryptocurrency

Bitcoin needs to break out – otherwise it might look like the end of the month dark

Bitcoin trade continues to move sideways, but could not break the persistent correlation with the stock market.

If Bitcoin does not break out soon, and from the bonds of the S&P 500 is exempt, this could pull the crypto-currency at the end of the month to the bottom.

Bitcoin is waiting for the share market collapses?

For nearly two months, the Bitcoin is price in a narrow Trading range. The volatility has decreased, and everyone is watching and waiting for a big, explosive movement.

But despite the best efforts of bears and bulls, the Trading Range to break through, to move things more to the side. Data show that this could stay a lot longer so, as the investors hope or expect.

The boredom in the otherwise notorious volatile asset class is Essentially the most painful scenario for crypto-traders.

Those who are accustomed to Bitcoins wild price fluctuations, a view now apparently somewhere else – to Altcoins as Chainlink, Tezos or DeFi-Tokens.

Bitcoin may be waiting to the fact that the stock market is collapsing, and that could be towards the end of the month.

BTCUSD SPX correlation line chart | source: trading view

The quarterly report brings the barrel to Overflow?

The first quarter of the year brought the S&P 500 to a new all-time high. Meanwhile, the Bitcoin was traded-price is about $ 10,000. However, the Black Thursday and the pandemic had other plans and led to the stock market closed its worst quarter since records began.

Now the second quarter of the year is completed. The large listed companies or companies to disclose their profits, could bring the markets tumbling down.

The economy is moving on thin ice. A larger stock market crash is prevented, and by economic stimulus money and money the Fed is printing has been held over the water. But the fragile market could collapse at any Moment.

The end of the month in which the trigger for the sale on the profit reports from the companies could come in for the second quarter to light.

Since the second quarter is now in the history books, companies in the United States, their sales and profits for the first half and the second quarter of the year. Q1 was already a struggle for most companies.

In the second quarter was, however, almost the whole of the quarter under quarantine, and only now things start to open step by step.

A negative Performance in the second quarter could be the Jenga-part that brings the markets later this month for the fall and due to the ongoing correlation of Bitcoin with the S&P 500 ends this is for the crypto-currency might be catastrophic.

Should it succeed, the resistance here is to break through will be exhausted at this price level, significant purchases. If then a lower Low is set, you could get the crypto market is in trouble, and any new bull market will be further delayed.

There is no Escape seems to be the potential impact of the pandemic, and although the shares have held up, you are on thin ice and any pressure could lead to a further Sell-off in the style of Black Thursday.

Worse still, the infection numbers continue to grow in the United States, suggesting that Q3 and Q4 for this battered and beaten up companies may be much better – let alone Bitcoin.

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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