Last Friday brought the smile back to the faces of Wall Street investors. The second half of the previous trading day witnessed the benchmark Dow Jones Industrial Average and the broader S&P 500 (SPX) index recovering quite a bit. The Dow gained almost 300 points.
As of writing this article, the Dow is up by 132 points already. Dow Futures are also up. This surge comes after some of the companies publishing fantastic quarterly results last week. On top of that, lockdown measures are going to be lifted in several states, and easing of restrictions will take place.
Lifting of lockdown to benefit businesses
Small businesses have been one of the worst affected amid the lockdown. More than 26 million people in the US have already lost their jobs. Stocks in Wall Street see the reopening of businesses as a positive sign. Some economists believe that the economy cannot be left to die because of the COVID-19. The number of new cases in the US show reduction.
Bitcoin firmly holds onto its consolidation zone
The good news for BTC investors now is the fact that BTCUSD is not declining. Currently, Bitcoin is trading at $7694.85. Neither the smaller timeframe nor the larger timeframe charts are showing signs of an enormous movement. The next big move would most likely happen as a result of the BTC reward halving.
BTCUSD Chart, Source: TradingView.com
Here’s the BTCUSD four-hour timeframe. We can observe that the price is moving at the upper end of the Bollinger Bands. Although the volatility in the movement has reduced, a slight momentum could push BTCUSD above $8,000.
BTCUSD Chart, Source: TradingView.com
Now let’s take a look at the daily timeframe for BTCUSD. The story is the same as the previous chart. In the long term, Bitcoin appears to be bullish. However, as of now, it is in the consolidation phase.
In case, BTC breaks out of the consolidation phase in an upward move, with large volumes, the short term target could be $8,200. On the other hand, in case it breaks below the consolidation zone, the drop could be till $7,300 or lower.
