HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Bitcoin’s Weekly Candle Just Closed—And We’re In the “Middle of Nowhere”

Bitcoin 2020/09/21 03:12 by Nick Chong

Just an hour ago, Bitcoin’s weekly candle closed after an eventual week in which the leading cryptocurrency surged from lows near $10,000 to a local high at $11,150. The coin now trades at $10,950 as of this article’s writing, slightly above the ~$10,850 weekly close.

The cryptocurrency, while above the pivotal $10,000 technical and psychological support level, is purportedly still in the middle of nowhere on a macro time frame. Bitcoin will need to move above local range highs or lows to confirm a trend.

Related Reading: Ethereum Transaction Fees Surge to All-Time Highs After Uniswap Launch

Bitcoin Is In the Middle of Nowhere on a Weekly Time Frame

One analyst remarked that Bitcoin closed the weekly candle in no man’s land despite the 10% rally from the local lows.

He did note, though, that BTC is not exactly bearish. The analyst cited the coin’s ability to move above $10,600. $10,600 is where three separate Bitcoin rallies topped over the past year, making it a level of importance for BTC to hold:

“Closed-back above resistance. I’ve been saying I’ll close my $12k short if that happens and I’ll do so today. We’re trading in the middle of nowhere ($11.5k resistance, $10.6k support) so I’m happy taking the win (amplified by the fact I already closed half at $10.3).”

Image

Chart of BTC's price action since late 2017 with analysis by crypto trader DonAlt (@CryptoDonAlt on Twitter). Chart from TradingView.com
Related Reading: Critical On-Chain Signal Predicts That Bitcoin’s Next Move Will Be Upward

Stock Market Will Predict What’s Next

The stock market is likely to predict what comes next for Bitcoin.

Like BTC, S&P 500 and other leading indices have stalled at highs, resulting in the formation of a large consolidation range.

Analysts are hopeful that the S&P 500 and other stocks will soon continue their ascent due to continued commitment to inject the economy with stimulus by central banks. The Federal Reserve recently commented:

“The Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee’s assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time. In addition, over coming months the Federal Reserve will increase its holdings of Treasury securities and agency mortgage-backed securities at least at the current pace to sustain smooth market functioning and help foster accommodative financial conditions, thereby supporting the flow of credit to households and businesses.”

Further strength in the stock market is likely to act as a boon for Bitcoin, which has rallied over recent months when the S&P 500 has scaled higher.

Related Reading: MicroStrategy’s Stock Continues to Soar After Bitcoin Purchase
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Bitcoin's Weekly Candle Just Closed—And We're In the "Middle of Nowhere"

0 Like(s)



You should also read...

Bitcoin 04/04/20 09:59 by Brenda Ngari
Bitcoin’s Safe Haven Narrative Revived As Correlation To Gold Hits ‘Levels Never Seen Before’
Bitcoin’s status as a safe haven almost became invalidated as the crypto-asset moved in lockstep with the United States equities in recent weeks. However, a new report by United States investment f...
Read More
Bitcoin 20/04/20 20:56 by Nick Chong
Bitcoin Price Dives to $6,800, Leaving $40 Million in Longs Liquidated
After managing to retake $7,200 on the weekend, Bitcoin tumbled lower on Monday morning, falling in tandem with global markets as the coronavirus continues to ravage economies. As of the time of this ...
Read More
Bitcoin 21/05/20 22:00 by Nick Chong
3 Key Reasons Why Bitcoin Has Further to Fall After Plunging Under $9,000
Bitcoin hasn’t fared well over the past few hours. After holding the $9,800 support region for days on end, the cryptocurrency has plunged lower over the past 30 hours, reaching a low of $8,800 ...
Read More
Bitcoin 16/06/20 12:00 by Nick Chong
Analyst That Predicted Bitcoin’s 2018 $3.2k Bottom Thinks This Comes Next
Bitcoin is at an impasse: over the past six to seven weeks, the cryptocurrency has been caught in a relatively tight holding pattern that has seen it range between ~$8,500 and ~$10,000. Every attempt ...
Read More
Bitcoin 21/12/20 17:00 by Cole Petersen
MicroStrategy Recently Added $650m to Bitcoin Holdings — Boosting BTC Strength
MicroStrategy has become one of the biggest forces of constant buy pressure on Bitcoin, being an impetus for it seeing serious gains as of late The cryptocurrency’s price action may have been b...
Read More