11 September 2020

BTCUSD daily chart

Key takeaways: Correlation between bitcoin and stock market prices, BTC is moving sideways - is BTC ready to move out of the bear trend? ETH reached our bullish target -what’s next?

Bitcoin price is currently consolidating at this previous support and resistance level at around $10200-$10400 after a 15% fall. It is trading right on a 100-day moving average. MACD indicator is deep in the red zone and it seems to be ready to get out of this bear trend. If BTC breaks above $10,500 resistance level, we might see a rise to $10,900 to the 0,618 Fibonacci Retracement. Otherwise, there is a support line at $9,800.

S&P 500 vs BTC Daily Chart

11 sept stocks

There is another interesting chart to keep an eye on - a correlation between stock prices and bitcoin (blue line on a chart) in a worldwide pandemic time. From February till March, S&P 500 lost 35% due to Covid-19 initial panic. Similar thing happened to most assets, including BTC and even gold. Through the summer the markets have recovered after a massive dump. Stocks went up over 50%, creating a new bubble as the Federal Reserve printed more money. Gold price grew 42% as a safe haven in times of high uncertainty and bitcoin rised over 200%. We are observing a correction as both S&P500 and BTC are losing the value at the same time.

ETH/USD Daily Chart

11 sept ethusd daily

In the meanwhile, ETH has reached our bullish target at $377, where it faced resistance. Judging by the trading volume bulls do not have enough momentum to break through this resistance. It is likely ETH will continue to trade sideways for some time in between the support at $320 and resistance (or between a 50-day and 100-day moving averages).

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