Bitcoin is struggling to resist accelerating selling pressure
Last Updated on October 15, 2020
Bitcoin Price Weekly Outlook – 15th October 2020
Bitcoin took an impressive upward trend at the end of last week’s trading, which pushed the price to rise by about 11.5%, to move the leading cryptocurrency from a low of $ 10,530 on October 6 to its highest in five weeks at $ 11740 during one day’s trading. Tuesday, however, accelerated selling pressure forced the currency to fall rapidly to $ 11,500.
The currency rebounded on Wednesday, resuming its uptrend to $ 11,600, but quickly bounced back to settle near the $ 11,400 level.
After Bitcoin reached $ 11740, traders started to doubt it a bit, especially after the repeated rejection of the major resistance levels at $ 11,300 and $ 11,500 after their breakout.
In the short term, traders expect the range between $ 11,200 and $ 11,325 to be an important support area. If this area holds, technical analysts believe that a significant drop in prices is unlikely, but if the currency shows weak momentum to below $ 11,300 it will likely become The currency is weak, despite bitcoin’s bullish momentum waning, traders generally see a greater support range from $ 10600 to $ 10900.
Some analysts say that the decline in Bitcoin coincided with the declines of the three major US stock indices, as the Dow Junoa Industrial Average, the S&P 500 Index, and the Nasdaq Composite Index all faltered to lose 0.6%, 0.6%, and 0.1% respectively during Wednesday’s trading.
They noted that the cryptocurrency has transformed in the past few months into a macro asset, which means that it is affected by macroeconomic and geopolitical factors in the same way that it is affected by stock indices.
So what caused the declines?
1. Disappointing news from two major American pharmaceutical companies (Eli Lilly and Johnson & Johnson) regarding their clinical trials and vaccines for COVID-19.
It was reported that the clinical trials of a vaccine against the Coronavirus from Johnson and Johnson had been temporarily stopped due to an unexplained illness of one of the study participants, after that the company’s chief financial officer, “Joseph Walk” said that this temporary suspension would give the independent Data and Safety Monitoring Board time to investigate In this disease.
One day later, Eli Lilly reported that the company’s third phase of the company’s trial of a treatment for the virus from antibodies had been stopped due to potential safety concerns.
2. Increasing doubts in the news about further progress in the US fiscal stimulus talks, although the Trump administration submitted a $ 1.8 trillion proposal, it was rejected despite his proximity to the $ 2 trillion proposals by Speaker of the House, Nancy Pelosi.
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