12 C
Kathmandu
Home Price Analysis Second Wave Of Coronavirus Fear Drops The Market. Will Bitcoin Pull Back...

Second Wave Of Coronavirus Fear Drops The Market. Will Bitcoin Pull Back Above 10k?

Both traditional stock market and crypto market plunged 5% – 10% today. This price action can be attributed to 3 factors: (a) Yesterday’s J Powell’s speech (b) Profit Takers exiting market (c) Increased number of COVID19 cases amid reopening of businesses.

For last few weeks, we saw crypto market decoupling from stock market. Yesterday, Bitcoin bulls tried to cross 10k resistance while SPY 500 was almost near all time high. But after hearing Fed’s decision of providing more stimulus into the market, maintaining near zero interest rates till 2022 and expecting high unemployment rate, many investors could not digest this news easily. Futures also went red with world’s financial market plunging 2% – 5%. When the market opened today, almost all assets reacted to same fear.

Image: TradingView

Since the ugly dip of March 2020, many stocks and cryptocurrencies have made multifold 100% return. Maybe today’s dip can be associated with profit taking strategy for many investors.

And lastly, the COVID19 cases are increasing worldwide. While many countries are planning for businesses to reopen, people are still fearful of second wave. If there happens to be a second wave of COVID19, we all should be ready for another nasty dump in financial market. Even with 5% – 10% dump, this market is still in bubble; manipulated by Fed’s stimulus; and not synced with real economic situations.

In this time, Bitcoin and Gold are thought to be safe haven assets. But we saw same fear. Bitcoin almost broke 9k. And if Bitcoin is safe haven, it will rebound to 10k before end of week in bullish scenario. However, if BTC does not hold 9k level, we will be seeing 8.6k.

Disclaimer: This price analysis is not a financial advice. Please do proper research yourself before investing any money.

- Advertisement -
Moazaad
Moazaad is an initial CDT member of RECAP blockchain network. He works anonymously and focused on development CoinDesk Nepal.
- Advertisement -

Stay Connected

5,125FansLike
2FollowersFollow
35SubscribersSubscribe

Must Read

Bitcoin Moves 27% Downside After Touching Historical $42,000

Bitcoin price dipped to $30,000 zone today which accounts for more than 27% downfall from its all-time high $42,000. After Bitcoin crossed its previous...
- Advertisement -

Writing your first smart contract in Scilla (Zilliqa)

Scilla — a programming language for writing smart contracts in Zilliqa Blockchain is not an easy language to master. The official documentation is itself too technical...

Bitcoin कहिले किन्ने? कहिले बेच्ने? डेटा विश्लेषण र ट्रेडिगं जानकारी पढ्नुहोस्

Bitcoin को मूल्य दिन प्रतिदिन बढिरहेको छ; यस्तो बेला लगानीकर्ताहरुले ध्यान पुराउनुपर्छ । Bitcoin को मूल्य एकदमै अस्थिर छ, यसको मूल्य आज दोब्बर हुँदा...

Facebook र Alibaba भन्दा बहुमूल्य Bitcoin!

Bitcoin को मूल्य $४१,००० पुग्दा बिटक्वाइन अब फेसबुक र Tesla को बजार पूँजीकरण (market cap) भन्दा ठुलो बनेको छ। यसैले, यदि बिटकइनलाई एक संगठन...

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related News

Bitcoin Moves 27% Downside After Touching Historical $42,000

Bitcoin price dipped to $30,000 zone today which accounts for more than 27% downfall from its all-time high $42,000. After Bitcoin crossed its previous...

Writing your first smart contract in Scilla (Zilliqa)

Scilla — a programming language for writing smart contracts in Zilliqa Blockchain is not an easy language to master. The official documentation is itself too technical...

Bitcoin कहिले किन्ने? कहिले बेच्ने? डेटा विश्लेषण र ट्रेडिगं जानकारी पढ्नुहोस्

Bitcoin को मूल्य दिन प्रतिदिन बढिरहेको छ; यस्तो बेला लगानीकर्ताहरुले ध्यान पुराउनुपर्छ । Bitcoin को मूल्य एकदमै अस्थिर छ, यसको मूल्य आज दोब्बर हुँदा...

Facebook र Alibaba भन्दा बहुमूल्य Bitcoin!

Bitcoin को मूल्य $४१,००० पुग्दा बिटक्वाइन अब फेसबुक र Tesla को बजार पूँजीकरण (market cap) भन्दा ठुलो बनेको छ। यसैले, यदि बिटकइनलाई एक संगठन...

Bitcoin को अन-चेन डाटा मूल्यको नयाँ उचाइ देखाउँदै !

Bitcoin को मूल्य Bull हरूले पूर्ण नियन्त्रणमा लिइरहेका छन्; उनीहरूले राता-रात यसको अघिल्लो सबै समयको उचाइ उछिन्दै नयाँ मूल्य स्थापित गरेकाछन्। $१४,००० बाट दौडिएको...
- Advertisement -