BTCUSD might take a back seat following the spectacular performance by Wall Street on Tuesday. The Dow Jones ended its first trading session on Tuesday with a bang. It ended the trading day with gains of 529.95 points.
The NYSE opened its trading floor. Bitcoin currently looks weak as the once-bustling marketplace is slowly experiencing loss of liquidity. BTC has lately seen prolonged dumping from the retail investors.
Factors that are affecting BTC negatively
- BTC is still perceived as a highly risky instrument. Its volatility can sometimes act as a double-edged sword. One day it reaches $10,000, and within the next few days, it reaches $4,500!
- The stock market, although risky, is not as much volatile as BTC. The proper stock-picking such as the Bluechip stocks, have a considerably lesser probability of decaying the wealth of the investors compared to Bitcoin.
- The improvement in the market sentiments will likely affect investment decisions. At the same time, the market conditions of BTC are getting worrisome.
Reports say that institutional investors are now controlling more than two-thirds of the newly mined Bitcoins. With the decentralized BTC getting accumulated in the hands of a few, the very foundation of decentralization might get defeated.
BTC technical analysis and prediction
The daily chart for BTCUSD shows that the candles formed in the last three days have a tiny body. They are almost like Doji candlesticks. It shows that the market is indecisive at the moment.
The traded volumes for BTCUSD have remained low. BTC keeps clinging to the support at $8,639. With no significant movement, in the past three trading sessions, and small candles even before that, Bitcoin is undoubtedly weak in this region.
The MACD had a bearish crossover recently, and it is increasing the bearish position. Without the appearance of any significant bullish pattern, BTC has a strong chance to slip to $8,200!
Check out BTCUSD Chart on tradingview.