The second wave of coronavirus and its impact on cryptocurrency rates
It seemed that everything was over this summer, and the Covid-19 epidemic was beginning to decline, but now it is clear that this impression was deceptive.
And with the beginning of autumn, the epidemiological situation began to deteriorate rapidly, and governments began to introduce new restrictions.
And this cannot but affect the economy and world markets, including the cryptocurrency market, which has just recovered after the first wave of the coronavirus.
Most investors are interested in how the new situation will affect the Bitcoin exchange rate and the value of other virtual currencies; is it worth selling existing assets or should they wait for a more favorable moment?
Let's consider the state of affairs using the example of everyone's favorite Bitcoin, since its rate is the best characteristic of the cryptocurrency market.
In August, Bitcoin moved in a price corridor between $11,000 and $12,000; in September, the support and resistance levels changed and the corridor formed between $10,000 and $11,000:
That is, even now there is a tendency towards a gradual decline in the exchange rate, and the pandemic has not yet fully entered its second stage.
If we follow the rule that most investors remember history very well, including the fact that the last wave of coronavirus caused its rate to more than double, then we can assume an increase in the number of sales transactions.
And this, accordingly, will lead to a further fall in the price of Bitcoin; it is expected that this time the fall will stop at around $5,000.
And now is the best time to sell your cryptocurrency and wait for it to fall in price to the next minimum in order to purchase it again.
The acceleration of the downward trend will occur after the breakdown of the $10,000 level, which has always been a certain psychological boundary beyond which many sell orders are located.
Therefore, at the moment there are two options: immediately open a sell trade or set your sell stop order below the 9800 level in the trading platform.
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Important points in Bitcoin trading - https://time-forex.com/kriptovaluty/moment-treyding