The price of Bitcoin has seen extreme volatility in the past 24 hours.
On Nov. 9, Bitcoin saw a sharp drop from $15,840 to $14,805, which occurred shortly after Pfizer announced its optimistic COVID-19 drug trial results, having tested nearly 44,000 individuals and demonstrated 90% effectiveness.
Subsequent to the announcement by Pfizer, major U.S. stock market indices rallied by around 3%. The highly anticipated breakthrough in the vaccine's development caused Bitcoin and gold to rapidly drop.
Since Bitcoin recovered back above $15,300 within six hours, whales likely bought back at a lower price.
Speaking to Cointelegraph, Bitcoin technical analyst Eric Thies said that Bitcoin has essentially been fluctuating between two levels: the $14,500 support and $16,000 resistance.
"We've seen Bitcoin breaking previous 2019 resistances for almost two weeks now, and with price rapidly fluctuating between $14.5K and $16K, bulls are in need of a consolidation period before we rapidly accelerate towards hitting the 2017 high of $19,500."
The short-term drop of Bitcoin was also critical to reset the futures market.
Ki told Cointelegraph that the exchange inflow mean shows the Bitcoin market is "Still in a strong buy zone." The exchange inflows show the amount of BTC that traders and investors are transferring to exchanges.
If Bitcoin continues to consolidate with decent momentum, Thies said buyers are safe from a major drop.
The price of Bitcoin has stayed relatively stable above $15,000 throughout the past week, apart from several days.
Bitcoin price outlook still bullish despite drop from COVID-19 vaccine news
gepubliceerd op Nov 10, 2020
by Cointele | gepubliceerd op Coinage
Coinage
Vermeld in dit artikel
Recent nieuws
Alles zien
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.