Wall Street closed this Monday on a positive day for the traditional stock market The bottom line of safe haven assets like gold and bitcoin ended in green numbers amid fears of increasing tensions between Washington and Beijing.
The rise in the share of traditional indicators of the world’s major financial center came after it was announced that earnings reports from major traditional technology companies such as Google, Amazon, Apple, PayPal and Facebook would be released this week.
Due, The Dow Jones Industrial Average “DJI” ended the day on Monday with 114 points or + 0.43% at 26,584 units. The exclusive SP 500 index closed + 0.74%, while the Tech Nasdaq gained + 1.67%.
In the rest of the world, the optimistic session on Wall Street allowed the world’s major stock markets to close a positive session. Among them, the strength of the Nikkei 225 index in Japan with + 0.43% and the Shanghai index in China with + 0.67% are noteworthy.
At the Latin American level, the day was also positive for some markets. This underscores the rise in Argentine stocks on Wall Street to + 8.2%, with MercadoLibre stock increasing that percentage and leading the group of five companies in Buenos Aires that performed well during the day.
Pessimism drives gold and bitcoin
After actions in the United States declined last week, after the Trump administration ordered the Chinese consulate to be closed in Houston and Beijing again ordered the US to be evicted from its consular headquarters in Chengdou. , The market seems to have taken a breather for investors today.
However, The pessimism continues to be an intensification of the bilateral relations between the great powers and an increase in coronavirus infections in both countries. This has forced many companies to close again, further delaying the long-awaited economic recovery.
In this sense, Investors today managed to boost gold and bitcoin prices, two assets that are considered a safe havenGiven the waning optimism about the recovery of the pandemic and its immediate economic impact.
Precious metal, Gold rose to a record $ 1,944 an ounce a dayas a desperate measure for investors to take refuge in the precious metal.
In the opposite Bitcoin’s price also appears to have benefited after breaking the five-digit psychological barrier and break the key resistance of $ 10,300 upwards in a rally that led to 1,485 units – + 14.95% – rising to a temporary maximum of $ 11,427 today.
In the middle of a day full of doubts about a noticeable economic recovery and a $ 600 weekly unemployment benefit ending this week The outlook for investors who have pushed gold and bitcoin prices down in the past 15 days is pessimistic at a level already widely expected by analysts.
And the scenario looks more pessimistic after earnings reports for 190 SP 500 companies were released this week. Analysts expect the collective earnings of the benchmark index to decrease by 40.3% compared to the previous year. all figures, even though they are still higher than expected in the middle of the crisis.
What you can expect from Bitcoin
If we add that we had an apocalyptic year that started with historic fires in Australia, Middle Eastern war events between two nuclear powers like Iran and the United States, combined with the pandemic outbreak by COVID-19 and the escalation of tensions the so-called trade war between Beijing and Washington, Everything seems to be a perfect breeding ground for assets like gold and bitcoin, to become even stronger as the semester 2020 progresses.
Although it is necessary to be careful with this type of assumption, analysts were very convinced that the events in the first half of the year and the unprecedented event of the Fiat Fed printing fiat money could trigger this without any support The market for alternative cryptocurrencies continues to grow, with Bitcoin leading the way.
Added to this are the fact that the interest and insight into decentralized financing are greater, the possible entry into ETH 2.0 and the fact that the entire market revolves around Bitcoin and the growing open interest in important exchanges in the EU as well as world positive news from the U.S. so traditional banking can get support on this type of asset and of course Bitcoin.
There is no doubt that we could be in a very cheap rest of 2020 for the market’s leading cryptocurrency with high chances of reaching the historic maximum of 2017and with enough foundation to overcome it at least in the next half of next year, which coincides with predictive models like the stock that let Bitcoin flow.
As Cointelegraph said today, chain inflows increased significantly as the price of BTC recovered above 10,000, a sign that fresh money is entering the crypto ecosystem.
Green technical indicators
On a technical level, many analysts and experienced cryptocurrency traders have pointed out that the Bitcoin minimum is for “Black Thursday” was a unique entry opportunity for many investors. and that it was a matter of time before Bitcoin broke its upward trend after weeks of “tense calm” with lateral movements with low volatility.
One of them is trader and influencer Lisa Edwards, who recently published a bitcoin price chart showing the upward trend of today’s price, which was given after Black Thursday.
And the #BTC Graphic from March … it has beautiful goals 😍😍😍 And so many people thought this was a satire … https://t.co/3e1ouf7x9b
– “Lisa N Edwards” (@LisaNEdwards) July 27, 2020
At the moment, the graph above seems to make a lot of sense, as Bitcoin’s price is currently losing the 11,000 level Indicators like Parabolic SAR on the daily chart for the BTC USD pair remain optimistic., with its dots under the last candles.
Aroon For its part, it indicates that the uptrend is still strong as its bearish signal remains right at the bottom of the chart.
The decrease in buying pressure can already be felt as investors use the indicator to make profits and settle BTC futures RSI Signaling an early price correction.
In general, the price of BTC could self-correct in the next few hours, but everything seems to indicate that the new support will be higher this time. make Fibonacci mirrors 50 percent.
If the price manages to hold the 10,000 level, we might think in the medium term that the price of Bitcoin could have a second direct bullish rally at key resistance levels near $ 12,000, which is in line with Edwards’ forecast.
The views and opinions expressed here are solely those of author and do not necessarily reflect Cointelegraph’s views. Every investment and trade movement carries risks. You have to do your own research when making a decision.