Live updates: Dow Jones up by more than 700 points | Bitcoin’s traded volume reaches a new high for 2020

Wall Street kickstarts the week with soaring optimism for a vaccine. Bitcoin's nature apparently makes it more desirable over other instruments during a crisis, as the daily traded volumes reached a new high.

The US Federal Reserve Chairman, Jerome Powell announced that the Fed understands the devastating effects of the pandemic. And that it will implement whatever measures would be in the best interest of the states. 

This hint at another likely relief package was sufficient to bring back joy to the citizens. Moreover, the pharmaceutical company, Moderna, announced encouraging results from its human trials of a potential Covid-19 vaccine. Its shares soared 30% on market opening.

 

Federal Reserve’s announcement might indirectly aid Bitcoin investors

The Federal Reserve reacted promptly in the face of the crisis. And the assurance it gave recently was a clear indication that another relief package might be coming soon. 

The last stimulus package that gave the US citizens $1200 saw a lot of people investing that amount in Bitcoins. Those who didn’t use that as an investment option might make use of it this time around.

The daily traded volume of BTCUSD reached a new high for the year. With the BTCUSD posting steady gains, amid a nosediving stock market has undoubtedly garnered a lot of attention.

 

BTCUSD technical overview and price analysis

Source: TradingView.com

Bitcoin’s short term view is, in fact, bearish. The reason why I make that statement is visible if we look at the hourly-chart for BTCUSD.

BTCUSD fell below the 20-period Exponential Moving Average after retesting it thrice. Now that it has fallen below this level, it would act as a stiff resistance to Bitcoin’s upward movement.

The RSI appears bearish, and so does the MACD.

However, on a long-term perspective, Bitcoin is poised to be significantly more bullish. BTC could prove to be a vital instrument against a probable deflation in the future!

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