Bitcoin price teetered on the brink of $9,000, breaking down along with global stock prices. Analysts believe the Friday slump across markets is a response to the still uncertain trade deal between the US and China.
Stock Market Gloom May Spill Over Onto Bitcoin
Stocks slid across the board on Friday, as optimism waned on the US-China trade deal reported the Wall Street Journal. The DJIA fell by 1% to 26,666 points, the same loss was logged by the S&P 500 futures, to 3,085 points.
The stock prices are a factor with the potential of indirectly influencing BTC. The benchmark crypto broke down suddenly below the $9,200 mark, extending the slide to as low as $9,050. Bitcoin price was mostly stagnant in the past week, calming down with expectations for a bigger move.
BTC traded at $9,070.88 as of 11:42 GMT, on flat volumes of $21 million. After a rally and a period of relative stability, the bitcoin price is at crossroads again. After the slide, activity on the Bakkt bitcoin futures market immediately went down.
The past backtrack for bitcoin price is also following another brief period of exuberance, with bullish expectations of a rally.
— Crypto_easymoney (@Cryptoeasymone2) November 5, 2019
But BTC had already experienced fatigue, as the $9,500 level was only revisited briefly. Immediately, the bitcoin fear and greed index fell from 54 points to 42 points, returning into “fear” territory.
BTC in general moves against stock prices, especially during the June and July rallies. But this time, factors specific to crypto trading deepened the losses. The expectations now see bitcoin price moving into another period of losses, seeing the recent hike above $10,000 at the end of October as a temporary bump or ‘dead cat bounce’.
Wouldn't it be lovely if we get a couple $5M buys, right about now blz?! $BTC
— CƦYP₮ΘɱΞƦ (@Crypt0mer) November 8, 2019
BTC Returns to Fear Territory
The bitcoin market price has shown an ability to still rally by $1,000 in a day, but the exact moment for such a development is difficult to guess. For now, BTC fights to stay afloat above $9,000.
Exchanges are also showing accelerating outflows, potentially signaling as the end of selling. But the buying pressures are also not enough to push bitcoin price to a new high.
24H BTC on-chain flows:#binance $61M in | $83M out#bitmex $11M in | $13M out#bitfinex $3M in | $5M out#bitstamp $36M in | $16M out#bittrex $3M in | $3M out#poloniex $1M in | $3M out#kraken $17M in | $24M out#huobi $70M in | $78M out
More @ https://t.co/u90eafzR5J
— TokenAnalyst (@thetokenanalyst) November 8, 2019
BTC prices have seen a slight boost from talks of a US recession, or even a worldwide recession. However, macro factors have a smaller influence in comparison to movements and coin flows specific to the digital asset market.
What do you think about the latest price action of BTC? Share your thoughts in the comments section below!
Images via Shutterstock, Twitter: @Cryptoeasymone2, @Crypt0mer, @thetokenanalyst
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