Il Bitcoin must face one major resistance at $ 10.500 levels. Bitcoin price plunged 11% from $ 10.100 to $ 9.012 yesterday.
The drop in the price of Bitcoin coincides very much with the drop in the Dow Jones Industrial Average (INDEXDJX: .DJI) which stood at 6,90%.
This is the second year that the BTC price trend has been following the traditional stock market. The first was the March 2020 stock market and the collapse of the crypto market due to the COVID-19 pandemic.
- CryptoNetDaily (@CryptoNetDaily) June 11, 2020
Is the collapse of Bitcoin related to the performance of the Dow Jones Industrial Average?
Il Bitcoin price it collapsed by more than 10%: the index opened down by 3% and by the end of the day the losses further extended up to 7%.
Experts believe that the drop in BTC prices cannot actually be related to the collapse of the best-known stock index on the New York Stock Exchange.
However, uncertainty across the asset class that triggered the slump in short-term BTC prices.
In addition to Bitcoin, other resources have also sunk simultaneously. After the initial momentum in June, the price of gold also fell by 1% on Thursday.
The collapse of Bitcoin prices triggered the liquidation of contracts in the futures market.
Currently, in the futures market, traders are exploiting about 125 times, which increases the chance of BTC pullbacks in a short period of time.
Il spot market volume it has been falling since May. Hence, we can say that futures trading has largely influenced the price of Bitcoin.
After halving Bitcoins last month, miners also played a crucial role in lowering BTC's price.
Since miners' rewards are halved and profitability has declined significantly, all miners who extracted a massive number of BTCs beforehalving they are systematically selling more than what they have mined.
As Bitcoin fails to repeatedly break through its $ 10.500 resistance, traders have doubts about what the next move might be.
The $ 9100- $ 9300 range remains strong support for Bitcoin.
Michael van de Poppe, a full-time Amsterdam stock trader, remains optimistic about the short-term trend of Bitcoin.
“If we break $ 10.000, the next level is $ 10,500. If we break $ 10.500, the next level is $ 11.500-12.000. Crucial level to hold; $ 9,100-9,300 ".