Bitcoin (BTC) jumped from $ 12,920 to $ 13,600 in four hours, registering a 5% increase. This trend is in line with positive developments from the European Central Bank and upbeat US employment data.

Macro factors contribute to the Bitcoin pool
Over the past week, Bitcoin has been steadily building up despite negative macroeconomic factors. The US stock market has seen a sharp decline, and the number of coronavirus cases has risen in the US and Europe.

The concept of Bitcoin as a protected asset is increasing significantly due to increased institutional demand. However, when risky assets like stocks decline, they could exert indirect pressure on Bitcoin.

Thus, when stocks rise and asset risk booms, the short-term outlook for bitcoin prices improves.

On October 29, several incidents occurred that resulted in the risk money being raised. First, the European Central Bank said it may apply for a fresh stimulus package in December. Second, US employment data reflects the lowest weekly orders since the start of the coronavirus pandemic.

Another stimulus package in Europe achieves two goals. First, it will significantly increase the appetite for risky assets in Europe. At the same time, it will force the United States into a much-needed stimulus agreement.

Since US President Donald Trump has made clear that the stimulus package will come after the elections, this leads the United States to sign a stimulus agreement in December.

The European Central Bank said it will look at all options to ensure the economy is sustainable. With this, Bitcoin, gold and stocks are fully distributed, as evidenced by the price of BTC. The European Central Bank said:

“The board will carefully consider the information received, including the dynamics of the epidemic, prospects for vaccine development and changes in the exchange rate.”
Christine Lagarde, president of the European Central Bank, also stressed that the institution acted quickly when the first wave of COVID-19 struck. She pointed to the possibility of a new incentive agreement, and said:

We’ve done it before: we responded very quickly, very appropriately, with great force, as some might say, to the first wave that struck the eurozone economy. We did it for the first wave. We’ll do it again a second time. Wave. ”
BTC prevents a dangerous fall into the $ 12700 range
As the price of Bitcoin drops below $ 13,000, technical analysts said Bitcoin is in danger of falling to $ 12,700 or less.

The $ 13,000 level was a strong support area, boosted by whale swarms and large orders. The BTC, which is cushioning this area, indicates that bidding is enormous selling pressure in the futures market.

The funding rate in the bitcoin futures market has remained negative in recent days. This indicates that most derivative markets are betting on Bitcoin.

However, the demand for bitcoin in the spot market offsets the selling pressure and protects Bitcoin from further imperfections.

Source: CoinTelegraph

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