Bitcoin underwent a swift drop on Monday morning on news of a successful vaccine trial. The leading cryptocurrency was largely reacting to the U.S. dollar index, which moved higher seemingly because a vaccine would mean less stimulus would be necessary moving forward. The stock market also jumped higher because it meant that U.S. businesses may be able to return to normal sooner rather than later.
Some think that this is the start of an extended move lower for Bitcoin, especially seeing that gold shed 5%.
But key technical analysis shows that Bitcoin held a level of importance during this move lower.
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Bitcoin Holds Key Support
As noted by the analyst seen below, Bitcoin held a pivotal price level during its correction earlier today. The chart shows that the cryptocurrency held an uptrend/upward diagonal formed at the start of the rally on Election Day:
Who has been buying this rally? It's smart money… High Net Worth Individuals. You can see the average transaction value between investors taking a big jump upwards. OTC desks are seeing this too.
Bitcoin is still in it's stealth phase of its bull run. pic.twitter.com/3q41pmNVP9
— Willy Woo (@woonomic) November 9, 2020