The past few weeks for Bitcoin were driven by speculation and anticipation, leading to the halving. On top of that, the stock markets remained sluggish. It was fueling Bitcoin’s steady rise.
However, in the last two days, BTCUSD lost around 8%. It started with the spectacular rise of the Dow Jones and S&P 500. That is when investors pulled their money out of BTCUSD and started dwelling in the stock markets.
BTCUSD becomes attractive for investors
Bitcoin traded at levels over $9000 for some time now. However, there was no spike in volumes of investment. Not too many traders moved the BTC markets during that span.
However, as soon as BTCUSD started dropping below the $9k mark, we immediately noticed a surge in volumes.
The daily-chart for BTCUSD captures the two significant drops in the last two days. The first breakout occurred the day Dow Jones gained more than 900 points. The second pullback occurred when BTCUSD recovered a bit, and those who bought during the highs started dumping their holdings.
Why Bitcoin remains bullish in the long term?
All those who bought Bitcoin on the rise lost significantly during the fall. We always highlighted the importance of having patience during investing. Right now, BTCUSD markets are not driven by greed, and therefore, the prices are attractive.
If we look at the weekly chart, we can see that despite the falling markets, BTCUSD had a steep rise since its drop on March 12.
Currently, BTCUSD is trading at $9017. It reached the crucial support zone at $8,913 and started rising. As soon as it began to rise, that was a confirmation for ‘buying.’