Bitcoin is having trouble overcoming the $11,000 psychological level
Bitcoin Price Outlook: 30th September 2020
The start of this week was moderate for Bitcoin(BTC), as it managed to make limited gains to remain in the $ 10,800 range, and is expected to face some short-term pressure as it is near very difficult resistance levels, but the overall path remains up.
The standard cryptocurrency is approaching an important technical level of $ 11,000, which will open the way for further growth, at the same time it appears that the important psychological level of the market is at $ 12,000, and in the recent past the currency failed several times to overcome this level, which may become an important turning point. To investor sentiment and launch a new round of growth.
In the meantime, Bitcoin’s ability to hold its positions in addition to a significant increase in trading volume can be considered a positive factor in supporting its future price, as daily trading volume jumped twice last Thursday to $ 50 billion to remain stable around it until Monday morning, however it is also considered trading volume. At $ 44 billion is a reason to boost the cryptocurrency‘s growth momentum.
Bitcoin faces strong support at the $ 10,000 level
Bitcoin rose above the $ 10,000 level on 27 July and has continued above that level since then, and data shows that it has remained 63 consecutive days of closing above the $ 10,000 level, a new record.
This indicates that $ 10,000 is currently becoming a strong support level after it previously acted as stiff resistance for a while, as the buying interest increased when it fell to $ 10,000 and below, and this important psychological level may now serve as a platform to start the next phase of the uptrend.
In mid-August, the currency reached above the price of $ 12,000, and unfortunately, this did not last long, as it quickly fell gradually and rapidly to fall below $ 10,000, but it returned to begin showing small signs of growth, eventually returning to about $ 10,400.
Prices remained calm for a while before they continued slow growth to about $ 10,800, despite this nearly $ 1,000 rise since the beginning of the month, but they are no longer what they were before, crypto enthusiasts believe that bitcoins can work better while they wait for the day that Bitcoin enters into fully bullish territory once again.
Central banks strongly support the markets, promising to maintain the easy monetary policy in the future, in addition to that, governments continue to discuss new support packages which also increase risk appetite among investors, but globally, there is a force that can destroy market sentiment regardless of size The promised incentives renewed the rise in Coronavirus cases, which is not a good thing for the global market.
In addition to the epidemic, the US elections are approaching, and it can be said that any candidate will have a clear advantage that threatens to cause new shocks, and in the event of a collapse in the stock market this will lead to a decline in the Bitcoin currency, but the question is whether the currency will return to the same activity that it did after the March correction. ?
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.