Second Wave of Fear May Bring Sales in Bitcoin
Fear of the first COVID-19 brought sales Bitcoin 9,063 USDT (-0,77%)
This morning, we see that sales of financial assets are coming with the fear of COVID-19 second wave. With the first wave going out of China and spreading rapidly to the globe, investors were looking for a safe harbor oriented towards cash and bonds. As bitcoin meets this environment behind 10,000 USDT, the fear that there will be a correction will not coincide with this period. For this reason, we may be entering a difficult period in terms of environment. Currently, following the test of the bottom level on March 13, the downtrend that started, may not support the bulls. Bitcoin difficulty adjustment is performed approximately every two weeks, based on changes in the hash rate, and the next difficulty setting will be estimated tomorrow. After the halving that took place in the second week of May, there was a slight decline followed by a 10,000 USDT attack. As can be seen in the graphic below, there is not much inverse correlation between hash rate and BTC prices.
But cyclical changes support some withdrawal if they cannot be met at the correction support levels. However, since cryptos are demanded as an alternative investment tool against the decline in the stock markets after the first wave of sales, we do not expect a very hard sale for now. Technically, the Bitcoinde correction zone, which has a horizontal band in the 8,700-10,000 USDT region, maintains our retraction zone and our expectation of retreat. As seen in the graphic, the green trend that started from March was broken and a pull back was experienced with the sales coming from the region we circled. The downward trend (purple line) starting from June 2 continues. The reactions will follow the 9,700 USDT level resistance, which this trend has passed.
BTC, 4-Hour chart