In brief:
Bitcoin is once again in the red as the King of Crypto has dipped below $9,300 and is valued at $9,250 at the time of writing this. The dip by BTC comes amidst news of the US Stock market experiencing a hefty correction due to news of a possible second wave
of the Coronavirus in the United States. The US has recorded over 2 Million confirmed cases of COVID19 with numbers continually increasing by the day.Also to note, is that 1.5 million Americans filed for unemployment as the country continues to cope with riots and protests related to the unfortunate death of George Flloyd.
The sudden drop of Bitcoin below the very crucial $9,300 support zone opens the doors to a sub $9,000 BTC. The King of Crypto’s push above $10,000 has been rejected several times and the dip in the Stock market was the final blow to the $9,300 support zone.
Only time will tell as to whether the support zones at $9,150 and $9,050 will hold before Bitcoin loses $9,000.
Further checking the daily BTC/USDT chart courtesy of Tradingview.com, the following can be observed.
As with all technical analyses of Bitcoin, traders and investors are advised to use risk management techniques as well as stop losses to protect trading capital.
Over the past few months, the correlation of Bitcoin to the stock market has been a subject of debate. The conversation hit a fever pitch during the Coronavirus crash of mid-March when Bitcoin was highly correlated
to the S&P 500. Today’s BTC dip as the US stock markets went down, is further evidence of this correlation and further points to more institutional players in the crypto-space.Bitcoin reacting to global financial news as well as its high volatility during the opening and closing of major stock markets in the United States is proof that the institutional players are actually knee dip in the BTC market action.