Cryptocurrency

There are reasons to be bullish, after Bitcoin has crashed on Tuesday around 600 dollars – Coin Update

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Yesterday, investors are assumed to be Bitcoin re-enters a decisive upward trend.

The crypto-currency rose from 9,800 $ – the highest price traded the BTC for about 10 days.

This step was taken due to the strength of the Altcoin sector and of the value of the American shares. Microsoft and Netflix on Monday reached new all-time highs, as the world cemented their Transition to digital technology.

However, that has changed in the last 24 hours. Of the highs from the Monday Bitcoin fell to about $ 600. At the time of writing, Bitcoin is trading at 9.230 $. This corresponds to a decline of more than 5 %.

Graph of the price development of BTC in the course of the last day of TradingView.com

Correlated with the stock market

Bitcoins bout of weakness on Tuesday seems to be the weakness of the S&P 500 appears to be linked.

After they had moved on Monday to the top, saw the equity markets on Tuesday with a rapid turn-round. The S&P 500 closed Trading on Tuesday with a decline of over 2.5%, while the Dow Jones fell almost to 2.75%.

The shares declined, apparently due to news of a resurgence of the Coronavirus, and in particular in the States of Florida and Texas, but also in countries around the world.

It is of the opinion that the shares are fundamentally overvalued, prevails also. As reported by Bloomberg, referred to Chris Watling, Chief Market Strategist at Longview Economics, everything is “expensive”:

“80% of the markets that we observe, have a rating in the upper quartile in comparison to the history of the market – the highest percentage recorded since the mid-1990s on the basis of data.”

The fact that Bitcoin has fallen on the same day, the shares fell, confirmed the existence of a correlation between the two asset classes. That is, should share from here to fall, so, too, BTC and crypto should be covered.

This correlation was observed by some of the prominent names in the crypto industry and on Wall Street.

A team of Analysts from JPMorgan, has recently argued that “crypto-currencies in the last few months, more like risk assets such as equities rich – a significant change compared to the past few years have been traded”.

The leaders of Goldman Sachs to vote in a certain way. Who stated in a presentation that BTC and other Kryptos not provide adequate diversification benefits relative to equities.

Bitcoin is analysts about ultimate Support:

Bitcoin’s decline may in isolation be considered bearish, but the crypto-currency are trading above the support level.

A Chartist has shared the graph below. It shows that Bitcoins decline on two key levels has been stopped:

An “internal trend line” was formed in March.The “blue line” of the parallel channel BTC has stabilised in the past two months.

The fact that the crypto-currency has done this, suggests that the bulls are in control.

Analysis of the Bitcoin price chart by the Trader, “Nunya Bizniz” (@pladizow on Twitter). Diagrams of Tradingview.com

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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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