Bitcoin Failed To Rise Above $ 7000 Despite Approval Of $ 2 Trillion US Stimulus Plan

Bitcoin Failed To Rise Above $ 7000 Despite Approval Of $ 2 Trillion US Stimulus Plan

House set to approve President Joe Biden’s $1.9 trillion stimulus package

Despite the efforts of the bulls, today the bitcoin rate was unable to overcome the resistance at the level of $ 7,000, which weakened the upward momentum.

After an unsuccessful assault attempt, a slight decline followed, which was stopped at the 6.5 thousand mark.., and then the price stabilized around 6.6 thousand. At the time of publication, BTC is trading at $ 6677 with a daily gain of 0.45%. However, it should be noted that over the past two days, the price has risen by almost $ 1000.

Bitcoin failed to make a breakthrough amid news of the approval by the US Senate of a fiscal stimulus package to mitigate the economic impact of the coronavirus outbreak. The agreed part of the plan provides for the allocation of $ 2 trillion by the FRS to support citizens and companies.

According to analysts, in the long term, an increase in the money supply will have a positive impact on the cryptocurrency market. However, in the near future, the failed assault weakened the investors’ fuse and the breakthrough of the boundaries of the current ascending channel.

A fall in the rate below $ 6250 will mean the end of the corrective rebound from recent lows and will open the way for the bulls to the support level around $ 5680.

Fundstrat Global Advisors analyst predicts that Bitcoin will need months of consolidation to repair the technical damage already caused by the collapse.

test: Ivan Malichenko, photo: Cloudinary, chart: TradingView

Bitcoin Failed To Rise Above $ 7000 Despite Approval Of $ 2 Trillion US Stimulus Plan