The price of bitcoin has reached $ 9,000 for the second time in two weeks, but as traders enter these downturns, the price is still trading above that level.
If the momentum or size of bitcoin price movements declines again, this may indicate a deeper price correction of $ 8,200 and below.
Market sentiment shows that buyers are interested in trading below $ 9,000 per drop.
Most penalties, along with the $ 9,000 bitcoin correction, have fallen in price. Buyers entering these sheds can provide a better space for the market.Given the major entry of market currencies into the price-fixing phase and a volatile situation, trading in this cross-border market can be a bit difficult because price movements are volatile.
Under these circumstances, traders may reduce their risk by reducing the size of their usual positions, and return to their original trades by starting trendy price movements and moving out of range.
On the other hand, the number of people with coronavirus worldwide has reached 10 million today.
Also, in the last few days, the number of new cases in the United States has set new records.
This has jeopardized the revival of the economy due to the pressure of sales in global stock markets. Meanwhile, secure assets such as gold continue to perform well.
Before Howing, the correlation between the digital currency market and traditional markets seemed popular among market participants, but now most traders have forgotten that the recent increase in the correlation between Bitcoin and the S&P 500 could be one of the reasons for the current volatility of Bitcoin.
According to Tone Vays, a well-known Bitcoin analyst and trader, with the S&P 500 falling below 3,000, the figure may fall another 12 percent.
Given the correlation between the index and the price of Bitcoin, the fall in stock markets could push the price of this digital asset to $ 7,000.
And Bitcoin expects to complete its consolidation phase this year in the $ 6,000 to $ 10,000 range.
Another hot topic is the impact of futures trading and bitcoin options on recent price volatility. This may not have much effect on the price, as there will always be investors waiting for the price to rise, and sellers are waiting for the price to fall.
Analysts are currently skeptical of the price of bitcoin and believe that the maturity of trading options has affected the price so far.
In other news, Grayscale, one of the most popular and popular digital currency investment funds, added 19,879 Bitcoin units to its Bitcoin Investment Fund last week alone.
This is much larger than the 7,081 bitcoins extracted during this period, indicating that demand is now above supply.Conclusion
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Bitcoin's price has moved down from $ 10,100 to the first correction level of $ 8,890, according to past analysis, and with a slight jump from that, it is now trading at $ 9,000.
In the short term, given the price jump from this level, it can be expected to rise from the current situation to $ 9,400 to $ 9,600.
On the other hand, the price rise scenario will be activated by moving it above the long-term downtrend line and stabilizing above $ 10,000.
This scenario is less likely than the price correction scenario, but if this move occurs, the first medium-term target will be 11,400.
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