Threat could become dangerous for Bitcoin in Q4
Bitcoin has just completed its best third quarter in its history – and only one in three quarterly financial statements exceeds $10,000. BTC recently set the crypto market on fire – with an overwhelmingly bullish mood towards Q4.
But bulls must be wary of an impending threat to the crypto market that could send Bitcoin Evolution back into bearish territory and risk a steeper decline. And that is the reason for this.
The one factor that could bring Bitcoin bulls back to harsh reality
After a record-breaking close of the third quarter, the mood regarding Bitcoin is exuberant again – and investors expect new highs on the crypto market every day.
The first crypto currency ever managed to regain an important resistance level with a high time frame and transform it for support. What happens next will set the tone for 2021.
The first quarter of the year began with star-eyed investors who had expected a rise out of the bear trend due to Bitcoin’s halving. When the pandemic hit later, hopes turned to panic and fear flooded the markets.
Stocks, Bitcoin, gold and everything else plunged into cash in a madly brutal way, which has since been drastically reversed in Q2 and Q3. The combined recovery in these two quarters brought both Bitcoin and the major U.S. stock indices back to new highs, and this is now expected to continue through the rest of the year.
However, the markets face a serious threat – and it is not the U.S. presidential election that is adding to the already unstable financial landscape. Could this potential threat be the straw that breaks the camel’s back and causes the crypto-market to stumble, testing deeper lows again?
BTCUSD Monthly resistance becomes support | Source: TradingView
How can the crypto market overcome the coming second wave?
The mood may be bullish at the moment, but it was also at the beginning of the year. When the pandemic hit hard and lockdowns were introduced, the stock market collapsed.
The fear and panic dragged Bitcoin, precious metals and everything else down with it.
Eventually the world learned to cope with the new conditions – and things returned to a „new normality“. But there could be a second wave, which would cause investors, analysts and citizens of daily life to look forward to the end of the year with great concern.
According to a CNBC investor survey, more than 60% consider a second wave to be their biggest worry for the future.
Fear, uncertainty and doubt can hurt even the most bullish markets, as we saw with the first wave earlier this year. A second wave could lead to similar results in the stock market, which in turn could bring Bitcoin’s sentiment back down.