In a spark of volatility, bitcoin jumped higher last night, going as high as $9,800. Since then, the leading digital currency has corrected slightly and is currently trading around $9,620 with 1.78% gains while managing $1.6 billion trading volume.
According to the DVAN Buying and Selling Pressure Indicator that depicts bull and bear trends, the crypto market is stuck in a negative trend. The indicator is heading further away from 400 level that has previously acted as a point of resistance.
To breach this level, Bitcoin and Ether must rally. Without a trend reversal, the gauge can further decline.
“If it can break above $10,000 in any significant way, it’s going to take off in a moon shot. Momentum is a very important driver in the marketplace right now, so if Bitcoin, which is no stranger to momentum, can break out, it’s going to fly,” said Matt Maley, chief market strategist for Miller Tabak + Co.
In 2020 so far, BTC/USD is up 32%. But we are still under $10,000.
Bitcoin continues to trade in tandem with riskier assets, experiencing a sell-off last week amidst a broader risk-asset aversion.
“Bitcoin continues to consolidate in what many crypto fans are calling the typical accumulation phase that occurs after a halving event,” wrote Edward Moya, senior market analyst at Oanda. The digital currency is struggling “despite an overall resilient appetite for risky assets.”
Moreover, with second stimulus checks confirmed, markets are expected to start moving again, and so will Bitcoin, which is already recording gains this week.
TRUMP BACKS SECOND STIMULUS CHECK FOR AMERICANS IN NEXT CORONAVIRUS AID PACKAGE, SAYS DETAILS TO COME IN NEXT FEW WEEKS -SCRIPPS INTERVIEW
— *Walter Bloomberg (@DeItaOne) June 22, 2020
Wall Street is also celebrating the second phase of reopening the New York Economy, and traders are in a buying mood.
As for the ripples, President adviser Peter Navarro’s comments sent through the market with him saying the China deal is over has also been soothed by Donald Trump. He took to Twitter late Monday, stating, “The China Trade Deal is fully intact. Hopefully they will continue to live up to the terms of the Agreement!”
Market experts are expecting Bitcoin to experience an upside as analyst Mati Greenspan who was sitting on the sidelines, now has his “crypto-only portfolio” allocated again.
“We've got another risk-rally on our hands, let's hope it lasts a while this time,” he said.
But an even more bullish tone was set by analyst PlanB who says bitcoin is going to $20k very soon.
— PlanB 🔴 (@100trillionUSD) June 22, 2020
As we reported, PlanB also shared recently that bitcoin is correlated (95% R2) and cointegrated with US equities (S&P500) as such supported by the US Federal Reserve actions. This means, if the S&P 500 goes up 2x, BTC will spike 416x.
And Bitcoin’s top at $288,000 in the next bull market as per the S2F model corresponds S&P 500 at $4,300.