Not long ago, after Pfizer announced it was testing a fairly successful vaccine, Bitcoin price had some slight fluctuations. Initially, this news caused BTC to drop lower, but it has shown signs of gradual increase as buyers absorb sell orders since then. The stock market also increased higher, meaning US businesses could soon return to normal.
Some thought this was the start of a move downward for Bitcoin, especially seeing gold fall 5%. But key technical analysis shows that Bitcoin is of importance in this decline.
Bitcoin price is seeing stagnating growth as the stock market rallies today
Bitcoin held a key price during its correction earlier today. In fact, Bitcoin held an uptrend/upward diagonal formed at the start of the rally on Election Day:
“$ BTC is holding the diag for now. Can we have some meme ascending triangle? Lose this diag and 1h ema200, and I’m starting worrying.”
Furthermore, the Bitcoin disruptions appeared shortly after Pfizer announced that their vaccine for the rapidly spreading virus was 90% effective. This is great news for stock markets in reducing global volatility and boosting the economy, but bad news for safe-haven assets like gold, which fell in price today.
At the time of writing, Bitcoin is down just over 1% at its current price of $ 15,280. This is the price at which it has been traded for the past week. Although BTC has previously shown signs of correlation with gold and stocks, its massive uptrend towards the end of the hour may have turned it into an independently traded asset.
Also, crypto trader Krillin himself added that gold is clearly being overused to achieve the downside. He argues that vaccine news should have been somewhat priced, meaning the US dollar could turn lower to boost gold and Bitcoin:
“I think markets overreacted to the vaccine news. Gold should give at least a bounce here. DXY is pumping hard because of EURUSD. But EURUSD was at resistance; I think the news only precipitated the dump. No reason to panic; even @nouriel thinks BTC can be a store of value now! ”
Bitcoin can still rise to $ 16,000
Bitcoin’s market fundamentals are also intact, giving confidence in the sentiment that the market will continue to move higher. This increase in Bitcoin investment may be related to macroeconomic trends, such as mass printing and the adoption of CBDCs.
According to UB crypto trader, stock market strength and V-shaped reversal following Bitcoin’s $ 14,400 drop suggest that a breakout rally of $ 16,000 is imminent.
$BTC – I’d rather be long leading into NYO. Shorting into previous consolidation after a V Reversal is a bear trap imo.
Strong futures open, V Reversal after grabbing a lot of downside liquidity over the weekend.
— UB (@CryptoUB) November 9, 2020
As AZCoin News reported, JPMorgan recently reported that they see the inflow of money into the BItcoin market as a possible sign that it is being used as an alternative to gold.
You can see the Bitcoin price here.
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