Bitcoin is a fast becoming haven for many institutional investors, according to American banking giant JP Morgan. This was recently seen as the price of gold drops 4% following the news about a vaccine for the almost a year-long coronavirus pandemic.
The pharmaceutical company developing the vaccine, Pfizer, said that the vaccine trial was successful as the vaccine prevented 90% of the people that volunteered for the clinical run. The test is not over yet, but so far, the vaccine is working far better than expected.
Akiko Iwasaki, an immunologist at Yale University, said he wasn’t expecting the vaccine’s outcome. He is only expecting 55%, maybe as a result. As news of the trial spread, the price of gold dropped from $1,954 per ounce to $1,871.
Gold is not the only asset that has reacted to the coronavirus vaccine news – the stock market. For example, Zoom recorded a loss of 18%, while other features of the stock market like FTSE showed a gain of about 5.2%.
With so much going on in the various financial markets, bitcoin, on the other hand, is very bullish. Because it is bullish and has more potential, traders are flocking from the multiple sectors performing well to trade BTC.
More traders will mean more supply. If miners are unable to meet this growing need, BTC prices will rise. Although bitcoin dropped from $15,800 to around $14,800, the digital gold was quick to recover and is now trading at $15,180 looking poised to continue its upward move.
Current patterns are making a bullish flag that indicates that prices will improve anytime from now. Additionally, RSI is on the rise, affirming the fact that more traders are pouring into the market. RSI is an indicator that shows traders’ actions. Suppose all traders can work together and sustain the current RSI as it is on the rise. BTC may break the $15,200 resistance level and may test the $15,400 resistance.
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Author: Gideon Geoffrey