The price of Bitcoin brutally rejected the $11,100-$11,300 resistance range with a 6% drop.
The price of Bitcoin could also recover in the short term if there are improvements in any of the three factors.
If a stimulus bill is approved, it would immediately cause stock market sentiment to rapidly improve and, in turn, cause a BTC rebound.
The current market dynamics of Bitcoin are significantly different from previous cycles because they are dependent on the traditional financial market.
Bitcoin has one potential catalyst that could ignite a rally despite the weakness of the traditional markets.
The drop occurred as BTC rallied from $10,300 to $11,100, leading analysts to think the take-profit pullback of DeFi tokens is buoying the buying demand for BTC. The cycling of profits from DeFi tokens to Bitcoin does not necessarily mean the market is rebounding.
"Capital exited lower market cap alts and Ether to a greater extent than bitcoin. I do not think this necessarily indicates a rebound in the markets but rather a greater flight out of higher beta tokens than in bitcoin, which has been more stable."Bitcoin decoupling from U.S. stocks?
Vinokourov emphasized that Bitcoin and Ether could rebound strongly due to their "Solid network fundamentals." The correlation between the U.S. stock market and BTC could be short-lived, given that the markets slumped unexpectedly within a short period of time, with unprecedented intensity.
The continuous increase in the hash rate indicates miners expect a higher BTC price in the medium term.
The futures and options markets tend to neutralize after a big price movement, leading BTC to recover with low volatility.
Bitcoin price hits $11,100 wall and drops 6%
Publicado en Sep 22, 2020
by Cointele | Publicado en Coinage
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