Legacy and crypto markets witnessed an improvement today as traders worry that the second round of economic stimulus might be delayed. While Bitcoin’s price is improving today, this exposure of potentially illegal behavior by banks will only strengthen the narrative for why investors should get Bitcoin.
The rising number of COVID-19 cases worldwide has led to panic selling by traders who are dumping equities, gold, crude oil, and cryptocurrencies instead of buying the USD.
On September 19, Bitcoin turned down from the 50-day simple moving average, which was $11,225 and broke under the 20-day exponential moving average and support $11,781 and $10,625, respectively.
The bears will attempt to sink the value under the $9,835 support, and if they win, it could result in panic selling that may move the price down to $9,000 or even more.
Analysts say that If a sharp recovery followed this fall, it would suggest that the bulls are accumulating at lower levels, and that might attract some customers again.
Additionally, if the Bitcoin pair fails to rally from the lower levels, the rebound is likely to take much longer as the bulls will wait for a bottoming formation to complete before buying.
However, if the pair rebounds off the $10,000–$9,835 support, the bulls will try to push the cost above the downtrend line. If they reach, then the uptrend is likely to continue.
Ether
The withdrawal in Ether stalled close to the 50% Fibonacci retracement level of $398.263 and turned down on September 20.
The next support on the downside is $308.392, and under it, $288. If the Ether rebounds off this support zone, it will show that the bulls accumulate on dips.
However, the bears are questionable to give up their advantage. They will try to stall any pullback attempts at the downtrend line and then at $398.263. If they succeed, it will raise the probability of a break under $288.
