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Bitcoin price analysis: BTCUSD gains trim down, the correction might take BTC to $8,000 before halving

BTCUSD had a significant correction after it reached a quarterly high above $9,400.
BTCUSD had a significant correction after it reached a quarterly high above $9,400.

The US Labor Department came up with its weekly data on unemployment last night. The picture is dismal. More than 30 million people in the US have filed the jobless report.

Moreover, yesterday was a busy day on Wall Street. The earnings report that poured in the previous day and yesterday was mostly gloomy. Dow Jones lost more than 288 points. Bitcoin lost the gains it had posted the day before. From its recent quarter high of above $9,400, BTCUSD fell to just above $8,600.

Equity markets influencing the move in BTC

Bitcoin was steadily on an uphill move earlier yesterday. Several websites were coming out with reports claiming BTCUSD would head towards $10,000. It didn’t take long for things to change dramatically. Many new investors who fell prey to the uptrend and decided to jump in and catch the BTC bus, lost a great deal.

However, for the long term Bitcoin investors or those who kept a close watch on BTC for quite some time now, would have predicted this move. It is crucial to understand that Bitcoin has not particularly turned bullish.

BTC is currently tailing the move in the equity markets. Any significant upswing in the equity markets and BTC is rising while a decline in equity markets and BTCUSD is plummeting.

Major correction for BTCUSD, price action could push BTC lower.

The upcoming halving in BTC, which will take place around twelve days from now, is a much-anticipated movement. It will bring down the reward awarded down to 6.25BTC per block mined.

This event is gaining all the attention because of its productive historical trend. BTCUSD gained significantly following each halving. It is the very reason why many new investors are investing in BTC.

However, the macroeconomic conditions because of the COVID-19 are such that another drop in the equity markets is impending. As more and more companies come out with their quarterly earnings report, the scenario will become more apparent.

Technical analysis of BTCUSD

bitcoin price btcusd

The day’s range for Bitcoin is $8,616.17 — $8,841.75. The daily timeframe for BTCUSD is here. Source: TradingView.com

The chart shows the steep correction that followed the rally in BTC. The large red candle was associated with the vast selling that ensued.

As of writing this article, BTCUSD was trading around $8782. BTC will face resistance at $8,979.12. The support zone for Bitcoin will be crucial. The support for BTC lies at $8,014.30.

Newer investors should avoid chasing Bitcoin now. BTCUSD will offer an excellent entry point. However, that will take place following a further correction.

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