Bitcoin Struggling to Resist Rising Selling Pressure to Hold Above $11000

Bitcoin had an impressive uptrend at the end of last week's trading, pushing the price up around 11.5%

Bitcoin took an impressive bullish trend at the end of last week's trading, which pushed the price up around 11.5% to move the leading cryptocurrency from a low of $10,530 on Oct 6 to a five-week high of $11,740 in intraday trading. Tuesday, however, accelerating selling pressure forced the currency to drop quickly to the $11,500 level.

The currency rebounded on Wednesday, resuming its upward trend to $11,600, but quickly rebounded to settle near the $11,400 level.

After Bitcoin reached $11,740, traders started to get a little skeptical about it, especially after the repeated rejection of the key resistance levels at $11,300 and $11,500 after their breakout.

Bitcoin

In the short term, traders expect Pepperstone The $11,200-$11,325 range would be an important area of support, 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 is likely that the currency will turn weak, although Bitcoin bullish momentum waning, traders generally see a larger support range from $10,600 to $10,900.

Bitcoin correlates with US stock indices

Some analysts say that Bitcoin's decline coincided with declines in the three major US stock indices, as the Dow Junhua Industrial Index, the S&P 500 and the Nasdaq Composite all stumbled to lose 0.6%, 0.6% and 0.1%, respectively, during Wednesday's trading.

They noted that in the past few months, the cryptocurrency has turned into a macro-asset, which means that it is affected by macroeconomic and geopolitical factors in the same way that stock indices are affected.

So, what caused the dips?

1. Disappointing news from two major US pharmaceutical companies (Eli Lilly and Johnson & Johnson) regarding their therapeutic and vaccine trials for COVID-19.

It was reported that clinical trials of a vaccine against the Corona virus from Johnson & Johnson had been paused due to an unexplained illness from one of the study participants, after which the company's chief financial officer, "Joseph Wolk", said that this temporary suspension would give the independent Data and Safety Monitoring Board time to investigate. in this disease.

A day later, Eli Lilly reported that the company's Phase 3 trial of an antibody treatment for the virus had been halted due to potential safety concerns.

2. Doubts grow in the news about further progress in US fiscal stimulus talks, even though the Trump administration put forward a $1.8 trillion proposal, it was rejected despite coming close to House Speaker Nancy Pelosi's $2 trillion proposal .

Mohamed Abdel Khaleq
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