Bitcoin / USD: Technical Analysis
Bitcoin rose today by 0.25% to trade at $11,788 in retracements after a series of sessions in the red it recorded earlier this week.
Yesterday the bitcoin bearish trend ended temporarily as the coin found support above $11,600, to resume the upward movement as it is trading marginally above $11,700, currently the coin is consolidating above $11,600 support.
After the failed breakout of the $12,000 level, bitcoin found support above $11,600, definitely the critical support level is between $11,400 and $11,600, the coin will recover IQ Option When the price holds above the support levels, in other words, as long as the currency remains above these levels, another upward movement will resume, but if the $11,600 to $11,400 level is broken, a drop to $11,000 is likely.
Bitcoin slumped after the crypto market hit levels not seen in over a year. Already, sentiment has shifted toward talk of new lows or a reconsideration of a Black Thursday-like selloff.
The pandemic remains a prominent factor and the economy is getting worse, however, there is one important reason standing in the way of any other chance of a Black Thursday pattern breaking down.
Bitcoin collapsed on Black Thursday, March 12, as it plunged to the price of $ 3800, the massive sale of the currency comes as a result of the fear and panic that plagued the markets due to the Corona virus, and this “Black Thursday” came after the retest of the $ 10,000 resistance, as the currency fell by more from 50% but later rebounded.
However, there are fears that Bitcoin could crash as it slid from the $12,000 resistance level, these fears have been allayed by the low number of Bitcoin that exchanges have to sell.
This is reflected by the measure of Bitcoin held on exchanges showing a low number, meaning that investors have withdrawn their holdings from the exchange to secure permanent storage.
Is it time to buy bitcoin?
Many prominent investors have resorted to buying bitcoin to hedge against inflation risks, especially as monetary policy interventions appear to be massive monetary inflation, in addition to the growing fear of a decline in the US dollar.
The United States recorded the largest monthly jump in inflation rates during the month of July in three decades, and monetary and fiscal stimulus measures that led to pumping about $6.2 trillion in the world's largest economy created inflationary pressures, which increased concerns about the value of the US dollar. and dominance over the coming years.
This has led many to resort to new investment plans, including cryptocurrencies, especially Bitcoin. MicroStrategy It announced plans to invest $250 billion of its capital in precious metals and bitcoin in order to maintain a healthy capital base as the dollar weakens.
If bitcoin continues its upward trend, this could be the time to buy bitcoin as a hedge soon.