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The U.S. markets offset all corona virus losses, but what happened to Bitcoin?

June 10, 2020

The Nasdaq, an index that mainly represents technology stocks such as Amazon, Microsoft and Alphabet, has exceeded 10,000 points to set a new record. The move above 10,000 points effectively wiped out all the losses suffered by the coronavirus pandemic, but the Bitcoin (BTC) price remains 50% below its record $ 19,665.

Apparently, Bitcoin correlated with the US stock market in MarchNow the digital asset is experiencing a slowdown in dynamics after a price increase of 167% in three months.

The upward trend and the V-shaped recovery of the US markets also show that the appetite for subprime assets and individual stocks is increasingBitcoin’s fight for a similar trend could be an indication that a withdrawal is still pending.

The U.S. markets offset all corona virus losses, but what happened to Bitcoin?The U.S. markets offset all corona virus losses, but what happened to Bitcoin?

Nasdaq is completing a V-shaped recovery

Nasdaq completes a V-shaped recovery. Source: Tradingview

Bitcoin is $ 10,500 or nothing

The US stock market has seen a strong upward trend due to the reopening of the economy, the improvement in the labor market and the growing belief that the pandemic is gradually subsiding.

Bitcoin’s label as a valuable safe haven and its proven ability to meet today’s global macroeconomic challenges have made it a growing point of interest for Wall Street barons and billionaire investors looking for a hedge against inflation.

Currently, Cryptocurrencies are in a difficult position as retail investors are leading a FOMO-led stock market recoveryWhile institutional investors are looking for the security of cash and bonds.

The source of Bitcoin’s demand remains unclear todayThe stock market generates huge profits for private investors and as such, investors see stocks as a more attractive asset class.

Many investors are still waiting for Bitcoin to recover strongly after the block reward cut ends. However, the mediocre volume on the spot and futures market shows today that an enormous increase is unlikely.

Technically speaking, Bitcoin’s daily chart shows that stability in the $ 9,100 to $ 9,300 range can provide a solid foundation for a new run in the short to medium term.

Cointelegraph employee Michael van de Poppe recently said::

“My main scenario is still that we should maintain the range of $ 9,100 to $ 9,300. In this case, it can move towards $ 10,500 and the actual breakout can increase to $ 11,600 to $ 11,900.”

Daily chart for the BTC / USD pair

Daily chart for the BTC / USD pair. Source: TradingView

Bitcoin’s price has been relatively stable at over $ 9,300 in the past two weeks, suggesting massive volatility is likely.

Volatility is expected to increase

Historical data shows that repeated rejections to a multi-year resistance level like $ 10,500 generally lead to a sharp decline, but after halving, the price tends to gradually move up to test the resistance level. higher over time.

The mood of cryptocurrency traders remains mixed, precisely because BTC is at a crucial point that can determine price developments over the course of the year.

The key level that most traders watch closely, andAt $ 10,500 and purely technical, a break above that level would signal the start of a new upward trend.