Bitcoin witnessed a significant rise over the course of the second quarter of this year, in a sign of improving risk appetite among investors, as it supports their confidence that central banks will continue to maintain monetary facilities, which can be a solution in the short term, but it could destroy the economy on the whole. the long term.
Despite these broad gains, Bitcoin has been stuck in a narrow range over the past few days between the $9,000 and $9,400 ranges, and is still trying to cross the $10,000 psychological support level.
Uncertainty about the price of bitcoin
So far the outlook for Bitcoin looks ambiguous with no clear indications to expect the next destination, the coin has made a series of high bottoms over the past couple of months, however, the $10,000 resistance level is still holding down refusing to move higher.
Analysts say the recession that has begun to occur over the past six weeks has a lot to do with a shift in investor mindset, with traders tending to become complacent and tepid about an asset with a traditional reputation for being volatile, after enough time has passed without much movement.
Despite the pessimism about Bitcoin, the chances of profit are abundant when fear prevails in the market XM Arabia We just have to wait until we see if the support or resistance is broken first, so that we can provide a clear picture of the direction that the major cryptocurrency will take next.
The environment surrounding Bitcoin is uncertain
The global economy has received many strong blows during the past few months, and the main cause is the Corona virus, which led to the countries of the world closing their economies, which entered the global economy into a recession, and with high expectations of a second wave of the Corona virus, investors' fears increased.
The International Monetary Fund predicts that global gross product will shrink by 5% by 2021, worse than its previous forecast in April of a decline of 3%.
As a result of the increasing economic instability that the world will face, Bitcoin is likely to experience significant volatility, which some analysts say may start as early as July.
This volatility is not necessarily a bad thing, large volatility of cryptocurrencies has often been associated with a rapid and significant decline, although it can also mean massive gains over relatively short periods, and this is what analysts see in the future as some believe that the price of Bitcoin could jump to 50,000 dollars sooner than investors expect.
Recent research indicated that bitcoin and digital currencies will not be the only assets that will be affected by the second wave of the Corona virus, and reported that these fluctuations are likely to hit the stock market, and the Dow Jones, Nasdaq and S&P 500 are likely to face significant fluctuations.
With more uncertainty in the stock market once again and the uncertainty of the direction of Bitcoin we may face increased volatility this July.
One of the things that can help bitcoin and other cryptocurrencies is that the Federal Reserve continues to buy stocks, bonds, and other products as a way to keep the US economy at least marginally stable.
In light of the uncertainty, many may turn to Bitcoin as a way to hedge their fortunes and protect themselves from inflation and other economic panics.