US stock suffers considerable hardship…Bitcoin price may remain at the level of USD 9000

Last night, the New York Stock Exchange(NYSE) showed a mixed trend, being affected by some factors: the expectation for the development of COVID-19 vaccine; the decent economic indicator; the prolonged conflicts between the U.S and China; a failure in reopening business due to the second wave of coronavirus.

On July 1st(ET), in the NYSE, Dow Jones Industrial Average 30 Index traded at 25,734.97, decreased by 0.3% compared to the previous session; Standard&Poor's(S&P) 500 Index at 3,115.86, advanced by 0.5%; Nasdaq tech stocks at 10,154.63, increased by 0.95% compared to the previous session. 

For the last 24 hours, Bitcoin(BTC) recovered the level of USD 9,200. Yet, it won’t be easy to gain momentum to break above the USD 9,300 resistance line, seeing a bitcoin rally. Some, however, anticipate that BTC will show a bullish sign thanks to the increased investment of both individual and institutional traders after the governments relaxed the regulations due to the Covid-19.

“Sam Stovall of CFRA Research said that Q3 has historically been the weakest quarter for the US stock market. If the history were to repeat itself and the correlation between BTC and S&P 500 remains high, BTC price action might remain subdued for a few more weeks,” reported Cointelegraph.

On June 29th, Stovall said that Q3 has historically recording the worst performance, seeing the increase in stock price merely 0.5% on average. Citing a data that analyzed market trends since 1945, he added that S&P 500 increased by 2% to 4% on average during the rest quarters.

“Bitcoin bulls are attempting to push the price back above the trendline. Even if they are successful, they will face stiff resistance at the 20-day Exponential Moving Average(EMA, USD 9,314) and at the 50-day Simple Moving Average(SMA, USD 9,428). A breakout of the 50-day SMA will signal strength, attracting further buying, resulting in a move to USD 10K. Meanwhile, if BTC price turns to a downward move, the bears will try to sink the price below USD 8,825. If they succeed, price can drop to USD 8,638.79 and even to USD 8,130.58," anticipated Cointelegraph about the short-term prospect on BTC price.

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