Bitcoin Speeds Past $13,000

October 30, 2020

ECB Announces New Stimulus Package

by Bog& Giulvezan

Bitcoin traded above $13,000 for the most part of the current week, reaching prices north of $13,800 on some exchanges. The biggest pullback of the calendar week occurred Wednesday, as investors across the world were troubled by reports of an increase in COVID-19 cases and recent lockdown measures adoptive past some countries.

As the traditional grocery store has been extending losses within the circumstance of economic uncertainty and the overall gloomy mood generated by surging coronavirus cases, Bitcoin's demand has grown, especially among institutional investors. Soon after the ECB press conference held Thursday, the phone number 1 digital asset recovered losings and stable above $13,000.

One of the possible catalysts behind the recent Bitcoin surge is the decline in the number of jobless claims coming from the US, which born last workweek to the worst since the beginning of the pandemic.

Another catalyst is likely ECB's decision to add new stimulus to the economy, in December. The European Central Bank declared: "The Governing Council will recalibrate its instruments, as appropriate, to respond to the unfolding situation and to ensure that funding conditions remain favourable to support the system recovery and counteract the negative impact of the pandemic on the projected inflation path."

Furthermore, ECB President Lagarde underlined that the ECB will use all tool at its disposal to help contain the pandemic and the negative effect that IT has on the economy. Put differently, we fire ask to a greater extent monetary input past the end of the year.

Chart Analysis – BTC/USD

Bitcoin added 2.77% over the endure 7 days and is currently trading at 13,300 against the The States Dollar with a bullish bias and above key support. Notwithstandin, as we behind short letter from the Weekly graph below, price was already rejected from a very important peak, made in June last year: $13,850. On top side of this, the Weekly cd is a bearish pin bar, which is usually a strong indication that a pullback will soon materialize (evenhanded hold in mind that the hebdomad is not yet over and the work of the candle May change).

Furthermore, the Stochastic is showing regular bearish divergence: price is making high highs while the oscillator is making lower highs. This is yet another indication that a pullback will soon travel along but it does not offer an exact timeframe for when this move May start.

Although a retracement is likely to occur sooner rather than later, arsenic long as cost is trading above the trend lineage seen on the graph below, the medium-term mind-set is optimistic.