Trader spoke about scenarios for bitcoin price after trying to storm $ 10,000

Practicing trader and ForkLog Hub resident Pavel Gromov talks about the current market situation.

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EventsThis week fully confirmed the previous forecast. After two days in the range of $ 8500- $ 9200, bitcoin began to grow and reached not only $ 9500, but also $ 9900, after which it began to decline.

At the time of writing, the first cryptocurrency is trading at $ 9,500, with a dominance index of 67.3%.

Over the past week, the price of bitcoin has been approaching the psychological mark of $ 10,000 for the second time. For the first time, it ended in a sharp drop to $ 8,100 with the subsequent systematic return above $ 9,000.

Bitcoin's growth this week comes against the backdrop of negativity in the stock markets. The S&P500 index fell below 2800, although it maintained the round mark at the close of yesterday's session.

Reasons for the fall in the stock markets:

negative after Powell’s speech, which predicted big problems in the economy due to the pandemic;
concerns about the second wave of coronavirus;
contradictions between the US and China; and the possibility of a resumption of the trade war.

But something else is interesting.Since mid-February, we have seen a strong correlation between the price of Bitcoin and the S&P500. On March 12-13, stock markets pulled cryptocurrencies with them. Subsequently, the correlation with growth remained, but when the S&P500 fell, Bitcoin practically did not react.

Bitcoin collapse and the crisis in the financial markets live: opinions, estimates, forecasts

Now we see an inverse correlation — Bitcoin is rising and the stock market is falling. This happened in August 2019, when Bitcoin reached $12,000 on news of the US-China trade war.

After another attempt to take $ 10,000, bitcoin fell for a short time to $ 9,200, then returned to $ 9500- $ 9400. Now I see two main scenarios for the next few days.

Option 1 — the decline continues, Bitcoin returns below $9200 and continues to be in the old $9200-$8500 channel.
Option 2 — Bitcoin remains above $9200, trading for several days in a wide range of $9200-$9500-$9800.

In the latter case, top altcoins will catch up with the first cryptocurrency, and after consolidation above $ 9,000, bitcoin will go to $ 10,500. I think that we will see the denouement today.

What do the graphs say?

The medium-term hypothesis of a possible reversal after a decline from $ 10,067 to $ 8,107 has not been confirmed. Yesterday, Bitcoin managed to break through resistance at $ 9570 and test $ 9939.

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This was followed by a sharp correction to $9,256 (the previous resistance became support). Main resistance zone — $9713.

Main support areas: $ 8924 and $ 9200.

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To continue the growth, buyers need to pass the level of $ 9713. In this case, you can count on updating the highs ($ 10,500 and above).

While the price is trading in the range of $ 9,200- $ 9,700, there remains uncertainty and risks of decline, in the event of a breakdown of support at $ 8924. In this situation, a return to $ 8100- $ 8400 is possible.

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Attention!

Financial market forecasts are privateopinion of their authors. Current analysis is not a guide to trade. ForkLog is not responsible for the results of work that may arise when using trading recommendations from the submitted reviews.

What do the graphs say?

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