The USD is rising due to economic concerns and doubts about US stimulus
USD Index Outlook: 26th October 2020 The USD rose in the European market on Monday…
Bitcoin saw a strong rally during today’s trading, to break the resistance level of $ 12,000 for the second time in just several weeks, but it failed to maintain the bullish momentum, quickly shattering it to the price of $ 11,200.
The last time Bitcoin reached this figure was in mid-August, as it rose to $12,400, but was unable to keep up with momentum and returned to $11,000 low a few days later.
Despite many attempts to jump above the $ 12,000 level and maintain it, traders warn against sudden selling in the cryptocurrency market, especially since BTC direction is still uncertain, and to confirm which direction it will have to first close above $11,700 or less than $11,000 to reveal clear bearish or bullish scenarios.
2 factors can cause the price of Bitcoin to decline throughout September, first: USD began to recover at a major support level, second: historically, September is a slow month for Bitcoin.
An abundance of potential stimuli may also boost Bitcoin’s bullish momentum, in recent months many indicators have indicated a positive trend for BTC in the medium term, and a decline in exchange reserves and increased institutional demand supports the long-term bullish state of BTC.
The boom that BTC achieved and reaching the level of $ 12,000 did not last long each time, which made many people realize that the strength of Bitcoin is still isolated and surrounded by fears, and in event that level of 12 thousand dollars is not exceeded again, it should not be expected. Many traders are seeing BTC reach an all-time high again anytime soon.
At moment BTC is moving at a slow and steady pace, and its performance should improve in the coming weeks, and it seems that what Bitcoin is doing is to rise little by little every day, and $12,000 is likely in its future again although we probably will not see it reach this region again until September at least.
It is worth noting that Bitcoin has repeated behavior of reaching target level several times, during May and June the great resistance was at $10,000 and the currency was able to surpass it at beginning of two months, but it was failing to maintain it due to lack of a strong reason for staying.
Thus, Bitcoin will need a massive event to permanently exceed $ 12,000, often requiring a mainstream financing matter such as banks that provide services for cryptocurrencies.
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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