Bitcoin (BTC) price started the new week with a 4 percent increase and the support of the richest man in the world. So what’s next?
Cointelegraph looked at six factors that could affect Bitcoin price action in the coming days.
Stock markets are messed up
The stock markets, which had the worst performance since October last week, started the new week with fluctuations.
Markets are still feeling the impact of individual investors, who have become unpleasant after the hurdles of regulators and trading platforms.
Bitcoin Price Index: 1 Bitcoin How Many TL? (BTC TL)
This turmoil focused on US companies was still felt around the world, and Asian markets faced similar pressure before recovering on Monday.
On the other hand, analysts warn that if the events of the past week are repeated, the already shaken stock markets may become even weaker.
In the US, dispute continues over the size of the new economic stimulus package. Republicans are proposing a $ 600 billion package instead of Joe Biden’s $ 1.9 trillion plan.
Famous author calls investors to Bitcoin
While awareness of the distinction around the world as to how restrictions affect the rich and the poor is growing, investor’s interest in a wake-up alarm does not appear to have diminished despite warnings from officials.
However, silver, a precious metal, was on their radar this time, not stocks. Silver rose to $ 29 on Monday, the highest level seen since 2012.
The precious metal has gained 15 percent in the last four days.
– Holger Zschaepitz (@Schuldensuehner) February 1, 2021
Some commentators, unsurprisingly, invited investors to switch from silver to Bitcoin, which did not perform very well.
Saifedean Ammous, the famous author of the book “The Bitcoin Standard”, said, “REMEMBER IS AN BEING THAT SILVER DOES NOT FIVE MONEY” he stated.
“The stock-flow ratio of silver is around 3. It is very easy to mine and tons of silver can be recycled into the market and the price can be reduced. Inflating the silver is a waste of effort. “
Musk: “I’m late on Bitcoin”
As soon as Bitcoin supporters felt left behind, the world’s richest man stepped in.
Elon Musk made it clear that he supports Bitcoin during a discussion on Clubhouse on February 1.
Musk explained that over the years his friends had tried to direct him to BTC, and even fed him bitcoin pie in 2013. However, Musk, who avoided being involved in the Bitcoin market, now admitted that he was “late for the party”.
“I had to think a little bit about it, but at this point I think Bitcoin is a good thing and I am a supporter. Like I said, I’m late to the party, but I support Bitcoin. “
The Tesla CEO added Bitcoin to his Twitter bio last week, triggering the cryptocurrency’s price to skyrocket 20 percent.
Withdrawing Bitcoin from exchanges
While it is not yet known whether Musk purchases or plans to buy BTC, BTC exits from exchanges signal that big players are continuing to invest in the long term.
In the past days, $ 500 million worth of Bitcoin was withdrawn from Coinbase alone in a single transaction.
— Alistair Milne (@alistairmilne) January 31, 2021
The data show that large amounts of Bitcoin withdrawn from exchanges are transferred to private wallets. This shows that investors prefer to save rather than trade.
According to data from on-chain analysis resource CryptoQuant, the total BTC reserves in the exchanges fell to the lowest level in the last year after a short-term rise.
XRP and DOGE outshines altcoins
Bitcoin may have to struggle not only with non-crypto investment options this week, but also altcoins.
After Reddit users targeted XRP, the fourth largest cryptocurrency outperformed other altcoins on Monday. XRP, which has gained almost 40 percent value in the last 24 hours, is trading at $ 0.67 as of the time of translation broadcast.
“Today we will see a massive increase in XRP price,” said Michaël van de Poppe, Cointelegraph Markets analyst. My guess is: 95 percent of people will hurt, ”he warned.
The altcoin Dogecoin (DOGE), which was born from the internet joke last week, has also increased by up to 900 percent as a result of a similar effort. Although this trend seems to disappear over the weekend, DOGE started the new week with a 37 percent rise.
DOGE is trading at $ 0.04 as of the time of translation publication.
Responsible for previous DOGE spikes, Musk carefully chose his altcoins related words during the Clubhouse controversy.
“I don’t have a strong opinion about other cryptocurrencies. I occasionally joke about Dogecoin, but these were really jokes, “he explained.
“Dogecoin was created to make fun of cryptocurrencies, but apparently fate likes irony.”
Eyes at 34 thousand dollars resistance
Finally, Bitcoin’s technical analysis points to a level that must be passed or avoided to determine the market direction.
Investors of Bitcoin, which has been consolidating since reaching $ 42,000 last month, are watching closely whether the lower levels should be retested before the bull market can continue.
Cointelegraph Markets analyst filbfilb said $ 34k should be converted into support to keep the uptrend thinks there is critical resistance.
Filbfilb stated that over $ 36,700 was sold intensively, while demand exceeded the supply for $ 30,000 and below.
Binance’in order book data On the other hand, it shows that the selling pressure of more than 34 thousand dollars is gradually increasing.