CryptosPrediction/Analysis

Are COVID-19 cases a Bitcoin trading signal for traders?

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Anywhere can send signals for bitcoin trading. It can be as simple looking at the charts as it can being how people react to purchasing certain assets. COVID-19, which was created in response to the pandemic that shook the world, has become a trade signal. When the two charts are compared, market movements have shown interesting correlations.

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The COVID-19 epidemic has had a profound impact on all financial markets. Bitcoin is not an exception. Markets were concerned about a possible crash after the lockdowns of 2020. It was true for a while. Market prices crashed as the world struggled for a way out from the pandemic. However, markets rose in unexpected ways once countries found their niche.

A more interesting point is that bitcoin’s price has risen based on increases in COVID-19 cases. The price of Bitcoin has also risen during times of high COVID-19. Bitcoin reached a record $ 64,000 in May, a clear example of this. In the same time frame, the world recorded the highest number COVID-19-related cases since the outbreak of the pandemic.

BTC price climbed as COVID-19 case numbers rose. Source:| Source: Twitter

As the number started to decline, the price for BTC began to drop. This was true for a few months, until COVID-19 cases began to decline. After June’s low COVID-19 cases, the price of BTC fell to its lowest point in two years.

Bitcoin continues to rise with COVID-19 case

While Bitcoin’s price remained low throughout June and July, it saw a bullish rally in August that saw the digital asset go up in value. This is due to the increase in buying sentiment in Bitcoin. The graphs of COVID-19 cases and this graph are very similar. At this point, the number of COVID-19 patients had also begun to increase. A In India, a new strain of the virus has emergedThat had ravaged the nation. Vitalik Buterin, Ethereum founder, donated more than $ 1. Billion to an Indian COVID relief charity.

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The price of Bitcoin is currently on the rise despite its decline. It maintains the same movements patterns as COVID-19 cases all around the globe. The important link between the two would be the Dunning checksDonated to citizens. When countries were forced to lock down by the pandemic, they resorted to paying citizens who couldn’t work to keep them afloat.

These checks gave people more disposable income because rent and other expenses were suspended in many countries. Many people who have received these checks use them to invest in financial market such as stocks or bitcoin. This has resulted in a rise in the price for the digital asset.

Bitcoin price chart from TradingView.com

COVID-19 continues to rage in some countries. Due to an increase of cases, some are about to lock themselves up again after breaking free from previous ones. If this trend continues, the price of bitcoin will rise again due to the increase in COVID-19 cases.

Featured image from The Economic Times. Charts from TradingView.com and Twitter.




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