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Possible growth of bitcoin price despite of negative news

Possible growth of bitcoin price despite negative news

  • 17 October 2020
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The bitcoin price has racketed to $11,725 due to the news release about Jack Dorsey’s decision for adding 4,709 BTC to Square’s balance sheet. They describe it as an instrument of economic enhancement. From that point, the price has fluctuated within a limited range above $11K.

A number of rejections around $11.5K and the news that OK Exchange has abandoned the entire withdrawals have weakened the bullish signal. The BTC/USD daily chart reveals the process of retesting the price of $11,100 which pave the way for a further drop to $10,900. Such negative news has resisted almost all of the altcoin prices to grow.

Micheal Van de Poppe has told about this to Cointelegraph:

“In order to keep the bullish movement, Investors must support the $11K price range strongly. This will be struggling as the virus outbreak recently made investors more conservative.”

He also mentioned that if the price could not resist remaining above $11K, then it may decline below $10K to $9,750. The latest price action analysis is not showing a signal of retesting the $12K level yet. However, certain positive news such as the Square and the Bakkt new record of high BTC delivery influenced the circumstances in favor of bulls. Top of Form Despite negative news density, BTC kept its value above the $10K level as bulls make a profit by holding the price above this level.

Traders expect support level retests

Once the bullish movement commenced, the price retested $11.2K as a support level. However, its pullback was a bit stronger to 20-MA that led the price to drop to $11K. Further, a drop to $10,650 is still feasible as it is close to the 100-MA from 2020 descending momentum.

To examine the short-term period, the BTC price will be between $9.7K to $11.4K which is a great point for a long position. Normally, the range of trading signals exists in every financial index analysis. For Bitcoin being unpredictable in the short-term period lies within its nature. when the level of volatility declines, it is considered as traders feel so cocky.

Professional traders consider the volatilities as a fear signal while it evaluates the average value of trades in the options market. This has no exception as both positive and negative movements push the indicator to rise. Irrespective of the cause behindhand the most current momentum, great traders hurried to protect their short positions. Temporarily, the futures contracts premium has remained unassertive, showing room for a bearable rally.

The futures premium shows positive signals

A futures contract seller will typically demand a price premium to regular spot exchanges. This condition occurs in all derivatives markets and is not limited to cryptocurrency markets. Moreover, along with the exchange liquidity risk, the seller is delaying settlement, thus the price is higher.

Concerning the options, the market has declined to its lowest level for seventeen months. This is not without risk as the S&P 500 3-month volatility increased by 28%. This amount is 60% for BTC which illustrates that a $500 daily fluctuation would be common. Bitcoin has been traded between $10,400 to $11,750 and the Bitcoin futures have increased by $300 million. This exhibits that even though it was an apparently quiet duration, traders had raised their bets.

2 responses to “Possible growth of bitcoin price despite negative news”

  1. Herve Fodouop says:

    Good

  2. Yanga Jili says:

    Good article and interesting

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