Bitcoin rose above $10,000, despite the collapsing economy | Where is the BTCUSD headed?

BTCUSD could witness a downward correction in the coming few days. The probability of a further increase in Bitcoin's price is equally likely. The next few days are going to be crucial for BTC.

The Coronavirus pandemic has left more people unemployed than the 2008 Financial crisis, and the Spanish flu combined. Industries have shut down operations. Factories are closed, and workers are forced out of work. Despite all these, in a stark paradox, the cryptocurrency market is soaring. BTCUSD crossed $10,000, ETHUSD fiercely passed $200.

This rapid rise of the BTCUSD has more than one reason attached to it. The upcoming BTC halving is undoubtedly a crucial piece of this puzzle. 

Behavioral Finance is at the heart of the BTCUSD momentum

The highest growing asset of the last decade was Bitcoin, when it grew by almost 90,00,000%. However, cryptocurrency and Blockchain were still at a very nascent stage back then. Only a handful of investors could catch the bull run.

However, this time things are different. Bitcoin’s popularity has grown multiple folds. After each having, Bitcoin has reached fresh highs. That is why people are following the trend and stocking up their Bitcoin wallets. Some analysts believe it is a collective FOMO and herd-mentality bias.

Paul Tudor Jones, a billionaire hedge fund manager, revealed that he is going long on Bitcoin Futures to hedge against inflation. It has fueled the BTC fanfare, especially just before the Bitcoin halving.

 

Where is the BTCUSD headed?

BTCUSD Daily Chart
BTCUSD Daily Chart

Let us take a look at the BTCUSD daily charts. Bitcoin seems to be steadily moving up. However, the recent macroeconomic scenario and the abrupt price increase point that a correction for BTC won’t be surprising.

The support levels are at $9431, and $8,341. The resistance is at $10,451. 

The RSI is already at the upper end of the 20,80 RSI spectrum. 

The coming few days are undoubtedly going to be very crucial for BTCUSD. It will reveal whether there will be a downside correction or a further upside.

Check out BTCUSD Chart on tradingview.

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