US President Donald Trump‘s stance on the release of the Coronavirus from a lab in Wuhan, China, is building international tension. People have not forgotten the implications of the trade war that occurred last year between the two nations.
And with the Coronavirus pandemic crushing the world economy, the financial markets could not handle another trade war now. Stock markets around the world suffered a heavy blow. Amid all these tensions, the silver lining, however was for Bitcoin!
Bitcoin’s rise to the likes of Gold during a crisis
Investors started going into selling sprees in the stock markets. Several investors now turned to Gold and even Bitcoin!
To put things into perspective here is a statistic:
US benchmark index, the Dow Jones Industrial Average, has lost approximately 16% since the beginning of the year until now. At the same time, Bitcoin gained more than 44%.
Why is the Golden Cross so crucial now?
On May 21, BTCUSD formed the Golden Cross, when the 50-day Simple Moving Average crossed over the 200-day SMA.
The last Golden Cross occurred on February 18. Instead of rising from there, Bitcoin dropped to a record low. Hence, this time, a lot of investors are skeptical about the occurrence of the Golden Cross.
However, it might be entirely different this time. BTCUSD recently bounced off a crucial resistance level over $8,927. Moreover, the Fibonacci 23.6% retracement lies just below that support.
All these factors instill a ray of hope for Bitcoin enthusiasts this time. If the Golden Cross pattern is successful, it could carry BTCUSD over $10,000.
However, one cannot ignore the current macroeconomic situation right now. A state of fear would deter investors from making any significant investments.