Bitcoin (BTC) price started the new week close to 40 thousand dollars. So what’s next?
Cointelegraph looked at five factors that could affect the Bitcoin price movement in the coming days.
The dollar is falling as the stock markets break records
Macro markets also accompanied Bitcoin’s rise over the weekend.
Despite the continued devastating effects of the coronavirus and the world economy, stock markets broke records. The S&P 500 index showed the biggest weekly increase since November. Oil also rose above $ 60 on Monday for the first time in more than a year.
Bitcoin Price Index: 1 Bitcoin How Many TL? (BTC TL)
On the other hand, the last details of Joe Biden’s $ 1.9 trillion stimulus package in the USA are being understood. Bitcoin supporters believe that spending more money will result in the concentration of money in the state and central bank, the “canyon effect,” which will pave the way for continued intervention in areas such as exchanges.
On the other hand, the dollar continues to depreciate. The US Dollar Index ended the uptrend that started in mid-January on Monday and fell below 91 points.
The depreciation of the DXY generally results in the strengthening of the BTC / USD parity, although the negative correlation has decreased significantly since September 2020.
BTC price made its best weekly close
Bitcoin has begun to appear ready to leave the trading corridor in the range of 30-40 thousand dollars that it has been watching for a while.
Record-running network fundamentals and some other indicators point to the initial stages of the bull market in early 2021.
While the hash rate of the network is at record levels, the difficulty is expected to increase by 5 percent in auto correction ten days later.
Bitcoin, on the other hand, had its highest weekly close on Sunday.
Popular investor Scott Melker, summarized as follows.
“There will be pullbacks, but technically this break will eventually move Bitcoin to $ 63,000.”
Critical day for Ether futures
Besides Bitcoin, altcoins, especially Ether (ETH) showed strength on Monday.
CME Group is preparing to launch futures for the biggest altcoin that broke a record last week.
The enthusiasm was clearly seen in the markets as professional investors flocked to the market. This enthusiasm, also contributed by Grayscale, raised the ETH / USD parity to $ 1,750.
Now, attention has turned to whether this performance can continue or not. The initiation of futures can also trigger a correction, with an adverse effect on the market.
Cointelegraph Markets analyst Michaël van de Poppe said, In his post he shared on Sunday “I personally do not intend to enter the market from this point,” he stated.
“Recently I followed the profit taking strategy intermittently. I don’t know how the markets will react to the launch of CME futures tomorrow. “
Van de Poppe added that support levels are located at $ 1,100-1,175 and $ 875-950 in case of a correction.
The launch of the first Bitcoin futures in 2017 coincided with the price surge and immediately triggered a year-long bear market. Futures could have the expected effect much later, only in 2019.
Bitcoin dominance is declining
Ether’s rise is not only triggered by futures. Continuing investments in DeFi and other major altcoins could be bad news for Bitcoin.
DeFi tokens have skyrocketed this year, and last week five altcoins gained more than 115 percent in value.
Therefore, Bitcoin’s market share is gradually decreasing. Bitcoin’s market dominance dropped to 61 percent, October levels.
Popular Twitter commentator The Moon compares current Bitcoin dominance to three years ago. shared a graphic “After the second halving, January 2017 was weeks away from the altcoin season,” he added.
“Bitcoin dominance dropped to 60 percent, and altcoins gained 20.50 or even 100 times in value. What do you think, can the same thing happen again? “
90 thousand dollar probability
Renowned analyst PlanB, creator of the stock-flow model On Twitter share He compared the post-halving performances in 2013 and 2017.
The analyst said Bitcoin should rise to a point between $ 100k and $ 288k depending on which period it will look like.
The commentator Bitcoin Archive, which also makes predictions based on the halving, is the BTC price until April. Thinks it will reach 90 thousand dollars.
The commentator suggested that Bitcoin was similar to the post-halving price behavior of 2017, but has a much greater upward potential this time around.