Yesterday, the Bitcoin course collapsed for the second time by 10% in June 2020. This fall coincided with a big drop by the Dow Jones index. is that the Bitcoin price not as uncorrelated as many would really like it to be? Wann see more news? Click here.
Does the Bitcoin price correlate more strongly with the stock exchange than expected?
Once again, the world’s largest crypto currency Bitcoin faces strong resistance at A level of $10,500. On Thursday, June 11th, the Bitcoin price plummeted by 11% from $10,100 to $9,012. Although no clear explanation might be found for this collapse within the Bitcoin price, it correlates very strongly with the autumn within the Dow Jones Industrial Average (INDEXDJX: .DJI), which also fell 6.90% on Thursday.
This is the second time this year that the Bitcoin price follows the normal stock exchange . the primary time was the stock exchange and crypto crash in March 2020 thanks to the COVID 19 pandemic. Yesterday’s incident has now been the second time.
Bitcoin course collasped is it associated with Dow performance?
The Bitcoin share price plunged quite 10% on Thursday, shortly after the Dow Jones’ pre-trade data showed a worth of 900 points. The index opened Thursday down 3% because the losses widened to the maximum amount as 7% by the top of the day.
Experts believe that the decline within the Bitcoin price cannot really be linked to Thursday’s market crash. it’s rather the uncertainty within the entire asset class that led to the short-term BTC price crash. aside from Bitcoin, other comparable assets have also fallen at an equivalent time. After the initial momentum in June, the worth of gold also fell 1% on Thursday.
Is the Bitcoin price being targeted?
No. However, the Bitcoin price has triggered the liquidation of some long contracts within the futures exchange . it’s generally believed that the recent sudden movements within the market are the results of targeted price manipulations to liquidate short and long contracts on a daily basis.
Therefore, it’s safe to mention that the Bitcoin price is currently during a non-trading zone, because the price movements are difficult to predict. This makes trading with leverage especially extremely risky and is more sort of a round of roulette.
Miner BTC liquidation ensure a better supply
After the last Bitcoin Halving last month, even the miners played a decisive role in pulling the Bitcoin price down. Since the miners’ rewards are reduced to half, and thus their profitability has fallen sharply, all miners who massively mined BTC before halving are systematically liquidating their BTC holdings.
The latest ByteTree data also shows that the miners have recently sold quite what they mine a day .
What is subsequent step within the Bitcoin course collapsed?
Now that the Bitcoin price has repeatedly did not overcome its resistance of $10,500, market participants are even more uncertain about what subsequent step could be . On the lower side, $9,100 – $9,300 remains a robust support for the Bitcoin price. Michael van de Poppe, a full-time trader on the Amsterdam stock market , remains optimistic about the short-term trend of the Bitcoin price. He said:
If we break through 10,000, subsequent level is 10,500. If we break through $10,500, subsequent level is $11,500 – $12,000. The critical level to take care of is $9,100 – $9,300.
Mohit Sorout, a founding partner of Bitazu Capital, says the Bitcoin price could soon experience a breakout from its two-year cycle.
— Mohit Sorout 📈 (@singhsoro) June 10, 2020
The fact is that the Bitcoin course collapsed but has remained very volatile thus far this month. On June 7, the Bitcoin price plunged to A level of $9,300. Soon three days later, on June 10, it recovered to over $10,000. What remains may be a nerve-wracking up and down.