The SP 500 and Nasdaq closed at record highs on a positive day in the stock markets, and the price of Bitcoin doesn’t seem to be left behind. It also exhibited bullish symptoms that took advantage of investors’ good optimism.
Wall Street indices The SP 500 and Nasdaq technology closed at record highs in the last week of August 2020. after Jerome Powell’s remarks that the Federal Reserve “Fed” will keep inflation rates low, even if inflation rises above the target level.
The Dow Jones also changed its trend in the year, turning positive for the world’s most important financial center on a green day Spread to other global markets including alternative crypto finance.
By the end of that Friday, the SP 500 was up 0.62% to close at 3,506.75 and the Nasdaq peaked at 0.42% at 12,0002.38.
The best performance within the SP 500 came from Western Digital Corporation with a plus of 7.38%, while it was the top winner in the technological Nasdaq VivoPower International PLC with 69.06%.
The Dow, in turn, gained 161 points to close the last week of operation in August at 28,653.87 units, up 0.13% in 2020.
At the top of the index, giant Coca-Cola stood out, up 3.32% when news broke of volunteer workforce cutbacks by more than 4,000 in Canada, the US and Puerto Rico.
The closing maximum of the SP 500 is the 19th of the year, then the ‘robust upgrade‘The Fed’s monetary policy framework has been announced, a change that means the Federal Reserve will keep rates near zero even if inflation stays above the target level of 2%.
In parallel, the optimistic embargo on the US market was tightened when two key metrics measuring the world’s largest economy were released.
First, consumer spending in the United States rose 1.9% above expectations in July, while consumer confidence rose to 74.1 in August from 72.5 last July.
Despite the fact that readings are still near the April pandemic lows, investors took the risk and were swept away by Fed sentiment implying higher spending within the US economy.
In the rest of the world, the Japanese market closed due to health problems following the resignation of Prime Minister Shinzo Abe. In Europe, the Spanish stock market hit + 2.16% a weekl With the help of Wall Street record highs and the recovery in the local banking and tourism sectors.
At the Latin American level, the positive sentiment was also felt in the region’s most important stock markets. In Argentina, the Buenos Aires stock market closed + 4.84% higher after four wheels were negative.
The country risk index of the South American country rose by three basis points, while the value of the dollar in the informal market fell by one peso to 137 pesos per unit.
In the rest of the major Latin American economies, major stock exchanges also took advantage of the positive rush on Wall Street to re-establish positions. Sao Paulo rose 0.61% over the week, Mexico 0.39%, and Colombia COLCAP rose a modest 0.08%.
Bullish Bitcoin Price
In the alternative financial market, cryptocurrencies, driven by the recovery in Bitcoin price, also had a positive closing price. Despite the fact that unlike the traditional stock market, Bitcoin does not close and operates 24 hours a day, 7 days a week all year round.
Usually, The board will turn green for both the price of Bitcoin and the rest of the major altcoins on the market. At the time of writing, the price of Bitcoin is up + 1.04% while Chailink of the major cryptocurrencies in the general ranking has continued to grow by + 3.82% over the past 24 hours.
Bitcoin’s market dominance is over 56% and the selling sentiment for BTC remains, according to a technical analysis by TradingView.
Even so, the Bitcoin price continues to print bullish signs in the medium and long term, pointing to an all-time high just around the corner.
The above is based on several aspects related to the crypto ecosystem and of course extraneous aspects such as the fact that itThe Fed statements are not only driving a bull market on Wall Street, but Bitcoin and decentralized finance as well.
In this context, Bitcoiners see the FED’s announcement as optimistic and the fact that Powell’s speech points to greater pressure from fiat money. For some specialists like the founder of Capriole Investments, Charles Edwardsthe beginning of the end of the Fiat ”.
“The Federal Reserve announced a major policy change Thursday and agreed to let inflation run hotter than normal to support the labor market and the wider economy.”
The beginning of the end of Fiat.#bitcoinhttps://t.co/jeYBXeuxoT
– Charles Edwards (@caprioleio) August 27, 2020
Like strong support from Bitcoin and a great move on social media after Powell’s speech calling it “Bitcoin friend”, Many enthusiasts remembered the benefits of cryptocurrency.
For some, The FED will succeed in raising the price of Bitcoin to USD 500,000. Gemini Exchange co-founder Tyler Winklevoss stated in an in-depth article on his official blog last Thursday.
– Winklevoss Capital (@winklevosscap) August 27, 2020
Another fundamental aspect that indicates a rebound in Bitcoin price to an all-time high is the fact that Many companies have already shifted their reserves to BTC to hedge against higher inflation. Microstrategy, the Canadian restaurant chain Tahini’s and the software company Snappa are just a few examples of the strategic institutional step that was unthinkable for many a few months ago.
Meanwhile, Miners continue to hold more Bitcoin than ever in the past two years. According to Glassnode and Coindesk Research, this is seen as very positive for the ecosystem as the scarcity of the spot market increases.
And if that wasn’t enough China continues to announce progress on its offer to launch its digital yuan, which it hopes will be tested during the Beijing 2022 Winter Olympics. When the Center for Information and Industrial Development “CCID” update of 37 general crypto projects in China was released today.
According to the government, Bitcoin fell from position 12 to position 14 as EOS takes first place and Ethereum takes second place, followed by IOST and then TRON.
With the world’s leading economies launching digital projects on their doorstep, it’s no wonder that Bitcoin will drive future adoption at all levels as its scarcity grows.
Don’t want to get down
As we mentioned earlier The price of Bitcoin is currently debating between a significant drop to a lower five-digit level or an upward trend towards New Year highs.
On the 1H chart for the BTC USD, Bitcoin price behavior is bullish after a low of USD 11,100 was recorded on the last 27th afternoon, breaking the lower Bollinger Band. The price managed to rebound and test the instant resistance levels at SMA 200 at $ 11,550.
Its support is in the mid-range of the indicator at an average of $ 11,476, which is still being tested near the upper Bollinger area at the time of writing after rejecting its maximum daily high.
If the price stays above this support over the weekend, then During this period it is possible to briefly think at a level above your resistance.
RSI It’s in a pretty optimal range and signals entry opportunities, with buying pressure setting the tone.
In the medium term, the outlook for the Bitcoin price is not much different. Here on the 1D chart for the BTC USD pair, The trajectory is still at a bullish level near 61.8% Fibonacci, well above 12,000.
In an ascending channel that seems immune for the time being The price of BTC is struggling to break a wedge that has formed at the current $ 11,400 level and manage to continue on its course towards higher levels to those reached so far this year after its March rebound.
indicator Aroon Its outlook is beginning to shift and its bearish signal is changing its trajectory downward so the bulls can take action.
The indicator in turn RSI We have managed to bypass the sell zone and everything seems to indicate that levels will return to optimal buy levels, a bullish sign for many analysts.
The views and opinions expressed here are solely those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement involves risk. You should do your own research when making a decision.