After an exciting weekly graduation in the Bitcoin (BTC) price rose above the $ 12,000 mark for the second time this month, the critical asset lost momentum and fell to less than $ 11,500.
The old resistance level of $ 11,800 did not work as support again As of this writing, Bitcoin has fallen below $ 11,600 to test support for the rising trendline at $ 11,550.
Daily graph of the performance of the cryptocurrency market. Source: Coin360
Bitcoin’s inability to stay above the $ 12,000 to $ 11,800 zone occurs when Gold prices corrected 3.6% and fell below its all-time high of $ 1,950. The price of silver also fell 6.85%, the first significant decline since hitting the 2020 high of $ 29.85 on August 7th.
Daily chart of the BTC / USDT pair, gold and silver. Source: TradingView
The correlation between the price of Bitcoin and gold is a hot topic among analysts and as of July The price movement followed new highs. Hence, it is not surprising that Bitcoin price is now correcting itself along with gold and silver. Meanwhile the US markets showed a strong opening The SP 500 gained nine points this morning and Dow up to 300. This comes after President Trump signed an executive order that extends federal financial aid benefits to unemployed and licensed Americans.
“Big numbers from the stock market!” tweeted the president today, coinciding with the rebound in the opening of the market.
The markets expect the Fed to provide greater economic stimulus
Last week, A breakdown in negotiations between US lawmakers meant that unemployment insurance had expiredas well as a moratorium on home evictions and some analysts feared it would negatively affect markets. Although gold, silver and bitcoin appear to have hit a temporary cap, Investors may interpret Trump’s executive order and the expected second phase of stimulus as a sign that the Fed will continue to push the economy until the pandemic ends.
Whether this is strong enough to encourage investors to abandon their hedge in gold, silver, and bitcoin remains to be seen.
Bitcoin daily price chart. Source: Coin360
When the price of bitcoin fell Some altcoins also suffered minor losses. Ether (ETH) fell 2.57%, Chainlink (LINK) corrected 7.51% and Bitcoin Cash (BCH) lost 4.72%.
Meanwhile, Tezos (XTZ) is a highlight among the altcoinsAfter a new record of USD 4.46 on August 11, an increase of 7.44% was achieved.
According to CoinMarketCap The total value of the cryptocurrency market is now $ 354.2 billion. Bitcoin’s dominance index is currently 60.5% and thus below the maximum price of June 2019.