BTC recently broke away from following the equity markets. However, the recent progress of BTCUSD suggests that investors are still relying on Wall Street performance to anticipate Bitcoin’s move. BTC recently rose above the $9k mark. But the bulls seem to have lost their momentum.
Bitcoin’s rise now was merely an upswing driven by a spike in the Dow Jones Industrial Average Index (DJX). However, as soon as the trading day ended on Tuesday and the Dow flattened, BTC lost its way.
Is a bull-run around the corner for BTCUSD?
Whether or not, BTC will have a bull-run in the near term is very difficult to predict. The chances of that at best would be 50%. The reasons for the unpredictable nature of BTC are:
- The hazards of the COVID-19 still looms large. Lockdowns are getting lifted in some countries. But until and unless a vaccine gets developed, the threat will only be temporarily at bay.
- The next reason for BTC’s abrupt movements is the upcoming reward-halving. Some analysts claim it could be different for BTCUSD this time. Historically, BTC rose exponentially after each halving, but this time, the whales could manipulate the markets.
BTC long-term investors need not worry
The whole world is indeed going through uncertain times. The financial markets and the cryptocurrency markets are no different. However, the good news is BTC will find commercial usage in the long term. And therefore, it is safe to assume that BTCUSD is bullish in the long run.
To understand the current trading strategies for Bitcoin, let’s take a look at the BTCUSD daily chart. Source: TradingView.com
We can see that BTC is above the exponential moving average line (EMA) of the Bollinger Bands. And by the looks, of it, the volatility is increasing, which is any day, good news for traders.
It is essential to observe the movement from BTCUSD hereon. If BTC touches the EMA line and moves above, that would be an excellent time to go ‘long.’ However, if BTC falls below the EMA line, that would be the time to enter a ‘short’ position.
