Today we look at the Bitcoin chart, which broke through $ 6,000 per piece. What are the reasons for this behavior and what can we expect in the future?
[BTC / USD] In 2020 to present value: -17.9%
The situation on Bitcoin could be compared to a boat on stormy waves. We are currently above $ 6,000. After a quiet weekend, Bitcoin waited for just one thing – how the world markets opened up after the Fed’s measures to reduce the impact on the world economy helped.
Fed withdrew interest rates by 1% 2 weeks ago it was by 0.5. The US Fed has cut rates to zero, moreover announcing a massive quantitative easing.
The World Central Banks have pulled out all the tricks they know over the weekend and culminated in the Fed lowering rates by 100 basis points on Sunday, pouring another $ 700 billion into the economy as a quantitative easing.
World markets opened on Monday morning at 9.00 am, which were closed a while after world indices like NASDAQ, DOW J. and SP500 fell 10%. Trading was stopped for 15 minutes, which happened for the second time this month, which is an extremely serious thing. Such a closure of trading did not be here for many years and it came only at this time, when the world markets are in the bear market.
An unofficial rule speaks of a 20% drop for bear market statements. After trading stopped, the markets calmed down and gradually grew respectively. Throughout the week, we get to the highest values over and over again. We are creating new lower values for 2020.
Throughout the month, we saw huge drops in world indices, and this reflected in the value of Bitcoin. The current support is USD 6,000 USD. It seems that at least this week, Bitcoin should be fine and even grow over $ 6,200. But the situation may change on Sunday as investors prepare for Monday’s market opening. For this week we had slightly positive information, if they don’t come next week, BTC may continue to create low values for 2020 but we don’t have to go back to higher values.