Bitcoin, the world’s largest cryptocurrency decreased by 3% in less than three hours as the Unites States stock market plummeted. Most traders are neural or slightly bearish on the short-term trend of the dominant cryptocurrency.
Analysts and traders are now identifying $11,973 and $12,500 as the two levels to watch for the extension of the BTC rally.
The price of Bitcoin dramatically decreased on the day due to the confluence of major macro factors.
According to an investment bank, JPMorgan, if the U.S. President Donald Trump would be re-elected, that would be the most favourable outcome for the stock market.
JPMorgan announced than they see an ‘orderly’ Trump victory as the most favourable outcome for equities.
Remarkably, the United States reached a record number in daily coronavirus infections. Not surprisingly, the country is facing a tough time. Except for this election is approaching which will be held in a week. Nancy Pelosi, House Speaker, announces that Trump administration is refusing the stimulus package.
Moreover, the Dow Jones Industrial Average (DJIA) decreased by approximately 1,000 points in a session. Bitcoin fell by around 3.4% in several hours amid United States stock market pullback.
However, according to technical analysts, it is hard to assume that the Bitcoin will witness a prolonged pullback.
The $12,500 support level stays a critical area for customers to defend for three reasons.
1) it is near the 10-day moving average on the daily chart to BTC.
2) it is the top of the prior peak on August 17, which makes it a critical support level.
3) it has large whale clusters, which makes it an area of interest for investors with high-new-wort.
Can BTC can remain at $11,973?
As long as Bitcoin defends $12,500, the chances of a bullish uptrend stay high. If dominant cryptocurrency can remain up to $11,973 despite the fast pullback, then the short-term outlook remains bright.
Whalemap’s researchers, which tracks the activity of BTC whales, announced that $11,973 is the level Bitcoin requires to hold for the uptrend to resume.
Another vital thing to mention is that even if Bitcoin hits the low $12,500 support level, traders think that this could make uptrend for Bitcoin.
On October 17, the price of the largest cryptocurrency increased by 15% with barely any pullback.
Following a massive rally, a consolidation phase or a short-term pullback could be useful for Bitcoin.
