USD consolidating above the lowest level in 3 weeks
EURUSD Weekly Outlook: 12th October 2020 USD rose in the European market on Monday against…
Bitcoin rose 0.25% today to trade at $ 11,788 as part of bounces after a series of red sessions recorded earlier this week.
Yesterday, digital currency downtrend temporarily ended above $ 11,600, to resume bullish movement above $ 11,700, currently, the currency is consolidating above $ 11,600 level.
After the failed breach of $ 12,000 level, Bitcoin traded above $ 11,600, critical support level certainly ranges between $ 11,400 and $ 11,600, BTC will move up when price stabilizes above support levels, in other words, if BTC remains above the support level, another bullish move will resume. But if the level of $ 11,600 is broken to $ 11,400, a drop to $ 11,000 is likely.
Bitcoin retreated after the crypto market reached levels of intense turnout not seen in more than a year. Indeed, sentiment has shifted towards talking about new lows or revisiting black Thursday-like sales.
Coronavirus pandemic remains a prominent factor and economy is worsening, however, there is one important reason standing in the way of any other chance for a Black Thursday pattern to collapse.
The main digital currency collapsed on black Thursday of March 12th, as it plunged to the price of $ 3800. The massive sell-off of Bitcoin comes as a result of fear and panic that gripped markets due to Coronavirus. This “Black Thursday” came after a re-test of the $10,000 resistance, as the currency fell by more From 50% but rebounded later.
However, there are concerns that Bitcoin may collapse as it retreated from the $12,000 resistance level, these concerns were calmed by a low number of bitcoin that exchanges had to sell.
Many prominent investors have resorted to buying Bitcoin to hedge risks of inflation, especially since monetary policy interventions appear to be large monetary inflation, in addition to the growing fear of USD decline.
United States recorded the largest monthly jump in inflation rates during the month of July in three decades and monetary and financial stimulus measures that pumped about $6.2 trillion into the largest economy in the world created inflationary pressures, which increased concerns about USD value. And its dominance in the coming years.
This has led many to resort to new investment plans, including cryptocurrencies, especially Bitcoin. Software company MicroStrategy announced plans to invest $250 billion of its capital in precious metals and Bitcoin in order to maintain a healthy capital base because USD is weakening.
If BTC continues its uptrend, it might be time to buy Bitcoin as a hedge soon.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
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