"Infinite QE" pump Bitcoin but the price is still below $ 6800, which scenario for BTC in the short term?

The US Federal Reserve has announced a series of unlimited programs to help the market, otherwise known as the infinite QE. Not only are crypto markets recovering, but other markets are experiencing the same thing.

Stock markets in the United States dropped their lower limit to just 5% on the futures market earlier today, but up 8% from the lows. So what can this news bring to crypto?

Bitcoin holds the support at $ 5,600

USD chart/BTC 6 hours | Source: TradingView

After BTC confirmed $ 5,600-5,700 as a support, the price surged, mainly due to news from the Fed.

Is the price will 'change life' from here? Is not. Bitcoin is still below the critical level of $ 6,800-6,900. A breakout of this resistance level will further benefit the upside. By then, the market is likely to retest prices and increase relief as the stock markets will also increase relief.

Stock market Continue to increase relief?


Chart of German stock index DAX 1 week | Source: TradingView

The stock market is likely to increase relief for a variety of reasons. One of them is the economic measures taken by the government to financially support businesses and citizens.

On the other hand, it is acceptance and understanding of the effects of the Corona virus. The first wave of panic ended, so these effects were priced. In addition, the indexes fell sharply in the stock market, which often creates room for some rebounds.

The first decline of the market ends in about 35-50%. European and US stock markets have lost 40% in recent weeks.

Because 18,000 points are the main support level, the basic level for the US stock market is similar to 8,200 points on the German stock index.


Dow Jones 1 week | Source: TradingView

What does that mean for Bitcoin and other cryptocurrencies? In the case of a slight increase in the stock market, other markets will also benefit. Because they decrease simultaneously, they will increase simultaneously until the correlation decreases. Recently, markets are still showing a positive correlation with each other.

Not only has the stock market and Bitcoin seen strong gains over the past few hours, but the same recovery has been reflected in commodity markets (gold and silver).

Total market capitalization is still below resistance

1-day total market capitalization of cryptocurrencies | Source: TradingView

Total capitalization is still providing a clear view of the market. If the index remains below $ 185-188 billion, lower levels need to be tested to support. If the market breaks above the red zone for support, there is an additional uptrend and the rally can reach $ 240 billion.

However, Bitcoin was strongly denied at the $ 6,800 barrier, indicating that not much bullish momentum is happening right now, especially after a 50% drop in a day.

Price increase scenario for Bitcoin


Chart of BTC price increase scenario/USD 4 hours | Source: TradingView

The scenario of price hike remains unchanged. A sharp break of the red zone at $ 6,800-6,900 is needed to maintain and sustain the upside.

However, the short-term support levels can be tested first. Through this, the market wants to see higher highs to maintain the uptrend.

A flip of $ 6,100 is the first step, after which $ 6,500 needs to be flipped to become support. If these levels fail, testing the resistance zone of $ 6,800-6,900 is the next step. If that level is taken, the market will likely see a $ 1,000 candle heading towards $ 7,800, because that is the next resistance level to watch.

In general, such a move will turn the momentum up. However, as stated above, the $ 6,800-6,900 area is critical to be considered support.

Discount script for Bitcoin


Chart of BTC price reduction scenario/USD 4 hours | Source: TradingView

The discount scenario is still the main scenario. Until $ 6,800-6,900 has been broken to raise prices, it is still likely to fall.

It is likely that the price of the wedge structure formed, through which the liquidity increased at $ 6,800-6,900 before prices fell to the support levels of $ 4,800 and $ 5,200.

The lower high of $ 6,500-6,600 also contributes to the downward trend.

Overall, the market should consider the Fed's action to be positive in the short term, although these measures may cause further declines in the coming months, negatively affecting Bitcoin's price.

But, in the long run, the more dollars that are generated, the more the price increases for Bitcoin and commodities. Be cautious in volatile moves in the market!

You can see the price of BTC here.

Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Minh Anh

According to Cointelegraph

Follow the Twitter page | Subscribe to Telegram channel | Follow the Facebook page

Crypto loans are only from 5.9% annual interest rate - you can use the money effectively without selling coins. Earn up to 8% interest per year with stablecoin, USD, EUR & GBP with insurance up to 100 million. Come on, get started now! →

Nguyen Diep

My name is Nguyen Manh Cuong. I was born in a poor village in Ba Vi district, HA NOI province - windy and sunny land. Currently

Post a Comment

Previous Post Next Post

Đọc nhiều trong tuần

10 Grands Sites de modèles PowerPoint gratuit
10 Grands Sites de modèles PowerPoint gratuit

PowerPoint est toujours le roi quand il vient à un logiciel de présentation. Il a été autour depuis des siècles et chaque nouvelle version ajoute plus de fonctionnalités et rend …

17 best home jobs in 2020
17 best home jobs in 2020

Earning Money blog access_time April 13, 2020 hourglass_empty 28 least Read Finding work from home is easier thanks to high technology. Not only suitable for tho…

How much RAM is the iPhone 12 Pro?
How much RAM is the iPhone 12 Pro?

The RAM of the iPhone 12 Pro is up to 6GB.
Based on information in the latest Xcode beta from Hiraku, it can be said that both of Apple's new iPhone 12 Pro models have 6GB of R…


JavaScript is a programming language of HTML and WEB. It is lightweight and most commonly used as part of web pages, but their implementation allows Client-Side scripts to interac…