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One Threat Could Overturn Overwhelmingly Bullish Bitcoin Sentiment In Q4

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Bitcoin simply closed its finest third quarter on document and solely one in all three quarterly closes above $10,000. It has set the crypto market on fireplace just lately with overwhelmingly bullish sentiment heading into This fall.

However bulls should be cautious of a looming menace to the crypto market that would ship Bitcoin again into bearish territory and put it vulnerable to a steeper decline. Right here’s why.

The One Issue That May Carry Bullish Bitcoin Sentiment Again To A Harsh Actuality

After a third-quarter shut in Bitcoin for the document books, the sentiment is exuberant as soon as once more, and traders expect new highs within the crypto market any day now.

The primary-ever cryptocurrency reclaimed an necessary excessive timeframe resistance degree and flipped it as assist. What occurs subsequent will set the tone for 2021.

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Q1 of this yr kicked off with starry-eyed traders anticipating an increase from the bear market attributable to Bitcoin’s halving. Hopes turned to panic when the pandemic later struck and concern poured into markets.

Shares, Bitcoin, gold, and the whole lot else crashed in a mad sprint into money, which has since reversed sharply over Q2 and Q3. The mixed restoration throughout these two quarters introduced each Bitcoin and main US inventory indices again to setting new highs, and now the expectation is that this may proceed into the remainder of the yr.

Nonetheless, markets have a severe menace looming forward, and it isn’t the US Presidential election that can also be appearing as an added stressor to an already fragile monetary panorama. May this potential menace be the straw that breaks the camel’s again, and sends the crypto market tumbling to retest deeper lows?

bitcoin btcusd monthly close

BTCUSD Month-to-month Resistance Turned Help Retest Holding Has Crypto Sentiment Bullish | Supply: TradingView

How Can The Crypto Market Overcome The Coming Second Wave?

Sentiment could also be bullish proper now, however it additionally was to start out the yr in Q1. As soon as the pandemic hit onerous and lockdowns had been put in place, the inventory market tanked. The concern and panic took Bitcoin, treasured metals, and the whole lot else down with it.

Finally, the world discovered to deal with the brand new circumstances, and issues resumed again to a “new regular”. However a second wave might be coming that has traders, analysts, and on a regular basis residents extraordinarily fearful concerning the finish of the yr.

RELATED READING | HERE ARE THE UNITED STATES’ “WILD CARDS” BRINGING DOWN STOCKS, BITCOIN & MORE

In accordance with a CNBC investor survey, over 60% of respondents mentioned {that a} second wave of the pandemic is their largest concern heading into the longer term.

Concern, uncertainty, and doubt can injury even probably the most bullish markets, as we noticed earlier this yr with the primary wave. A second wave might produce comparable leads to the inventory market, which might, in flip, take Bitcoin sentiment again to bearish.

Featured picture from Deposit Photographs, Chart from TradingView


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