Bitcoin Swoons as World Markets Fall- Its Recovery is Guaranteed, Here's Why


Bitcoin Swoons as World Markets Fall- Its Recovery is Guaranteed, Here's Why

I don't need to tell you that Bitcoin has underperformed recently, and hit a 2-month low this weekend.

Bitcoin is sitting solidly below $10,000 with a current price of around $9,500. Bitcoin broke below the psychological and technical $10,000 mark, and has been on a downward trend for the past few weeks. When we look at the chart, we see a resistance level at $9,700 and a lower resistance level at $8,000. This gap is worrisome, and indicates that any further downward motion can carry us below $8,000. This is a troubling signal.

Bitcoin's market dominance is currently at around 69%, which means it drives the cryptocurrency market, and altcoin season is far off. Major altcoins including Ethereum, Ripple's XRP and Litecoin have been hit particularly hard during this downturn.

After Labor Day Weekend, cryptocurrency volumes will pick up. Investors and traders are seeking yield as world stock markets swoon, and will likely look to the cryptocurrency markets for yield. As the US 2020 election season approaches, Bitcoin is poised to outperform on both political and economic uncertainty.

Will Bitcoin act as a safe haven asset during the coming recession? I believe this to be the case. According to analysts, consumers and business owners are anticipating a recession in the next year, and institutional investors are preparing for the worst by accumulating gold. Gold is solidly above $1,500 and will act as it always has during recessions- with a major price increase. Bitcoin will likely do the same in its first recession.

Based on the price action of gold during the yield-curve invention and recession fears, we could see Bitcoin hit all time highs. The coming election is incredibly polarizing for the US, and could also lend fuel to Bitcoin's fire. Also, rewards halving kicked off our last bull market, which is slated for May of 2020. All these factors make Bitcoin a solid bet for yield-starved investors.


Sources:

Originally published in my Publish0x account I own at:

https://www.publish0x.com/introducing-myself-on-publish0x-wstanley224/bitcoin-swoons-world-markets-fall-its-recovery-guaranteed-he-xkppwv

Also published in my Weku, Serey, Minds, Hyperspace, Whaleshares, Golos and Bearshares accounts I own.

Picture from Pixabay.

https://coinmarketcap.com/currencies/bitcoin/

https://www-forbes-com.cdn.ampproject.org/v/s/www.forbes.com/sites/johntobey/2019/08/30/consumers-are-at-tipping-point-so-prepare-for-bear-market-and-recession/amp/?amp_js_v=a2&_gsa=1&usqp=mq331AQEKAFwAQ%3D%3D#aoh=15673603419275&referrer=https%3A%2F%2Fwww.google.com&_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.forbes.com%2Fsites%2Fjohntobey%2F2019%2F08%2F30%2Fconsumers-are-at-tipping-point-so-prepare-for-bear-market-and-recession%2F

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BitcoinCrazy
BitcoinCrazy

I am a writer, aerospace worker, cryprocurrency enthusiast and entrepreneur. I am a blogger and am eager to join this community.


Introducing Myself on Publish0x-Wstanley224
Introducing Myself on Publish0x-Wstanley224

Hello Publish0x community! I am a blogger who is excited to join you. I enjoy writing about cryptocurrency, life, business and the financial industry. Join me on my journey, I am glad to be here.

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