After an exciting weekly close in which the price of Bitcoin (BTC) rose above the $12,000 mark for the second time this month, the critpoactive lost momentum and fell to less than $11,500.
The old resistance level at $11,800 again did not work as support and at the time of writing the Bitcoin price has fallen below $11,600 to test support for the uptrend line at $11,550.
Cryptocurrency daily market performance snapshot
Bitcoin’s inability to stay above the $12,000 – $11,800 zone occurred when the gold price corrected by 3.6% and fell below its historic high of $1,950. The silver price also fell by 6.85%, the first significant drop since reaching the 2020 high of $29.85 on August 7.
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The correlation between the price of Bitcoin and gold is a hot topic among analysts and, until July, the price movement followed new highs. Therefore, it is not surprising that the Bitcoin price is now correcting along with gold and silver. Meanwhile, the U.S. markets showed a strong opening with the S&P 500 rising nine points this morning and Dow up to 300. This comes after President Trump signed an executive order extending federal financial aid benefits to unemployed and licensed Americans.
„Great stock market numbers!“ the president tweeted today, coinciding with the market opening recovery.
The markets are expecting more economic stimulus from the Fed
Last week, a break in negotiations between U.S. lawmakers meant that unemployment insurance had expired, as well as a moratorium on home evictions, which some analysts feared would negatively affect the markets. Although gold, silver and Bitcoin appear to have reached a temporary ceiling, investors may be interpreting Trump’s executive order and the expected second phase of economic stimulus as a sign that the Fed will continue to push the economy until the end of the pandemic.
It remains to be determined whether this is strong enough to encourage investors to leave their gold, silver and Bitcoin coverage.
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As the price of Bitcoin Profit fell, several altcoins also experienced small losses. Ether (ETH) fell by 2.57%, Chainlink (LINK) corrected by 7.51% and Bitcoin Cash (BCH) had a loss of 4.72%.
Meanwhile, Tezos (XTZ) is a highlight among the altcoins, maintaining a 7.44% gain after reaching a new record of $4.46 on August 11.
According to CoinMarketCap, the total value of the crypto market is now $354.2 billion. Bitcoin’s domain index is currently at 60.5%, the lowest value since the peak price of June 2019.