5 factors Bitcoin investors should watch this week

Bitcoin (BTC) price started the new week at the edge of $ 50k. So what’s next?

Cointelegraph looked at five factors that could affect the Bitcoin price movement in the coming days.

Dollar crashed as the stock market rose

Stock markets continue to rise, continuing the rally in which most indices broke records.

Markets started the week turning green, although many indicators, including Warren Buffett’s market indicator, warned that this could end soon.

In Japan, the Nikkei index grew by 1.6 percent, reaching 30,000 points for the first time since 1990.

Bitcoin Price Index: 1 Bitcoin How Many TL? (BTC TL)

Correlation of BTC’s 90-day return with the dollar, VIX, gold, and the S & P500. Source: Digital Assets Data

On the other hand, the US dollar continues to weaken. The bullish effort of the US Dollar Index (DXY), which measures the dollar’s strength against trading partner currencies, failed over the weekend and again tested its 90-point support.

While Bitcoin benefited from these drops, pullbacks were seen when DXY bounced.

The constant printing of money by the central bank indicates that the economic situation is unlikely to return to its former state in the long term.

Saifedean Ammous, author of the bestselling book “Bitcoin Standard,” suggested after a submission from the European Central Bank that the organization will keep the terms in favor of Bitcoin until the crisis is over.

Ammous, made a comment as follows:

“That’s why those who use legal money live a miserable life from one imaginary crisis to the next.”

DXY 1-hour candlestick chart. Source: TradingView

Will 50 thousand dollars be seen?

In terms of Bitcoin, the most talked about topic in the industry is when and how BTC will pass $ 50,000.

Although BTC worked to cross the psychological border over the weekend, it was only able to rise to $ 49,714.

The BTC / USD pair declined right after, consolidating around $ 47,000.

“The Bitcoin market is not rising in a straight line, is it?” Said Michaël van de Poppe, Cointelegraph Markets analyst. he summed up. Van de Poppe often emphasizes that Bitcoin’s vertical rise cannot be sustained without pullbacks.

1-hour candlestick chart (Bitstamp) of the BTC / USD pair. Source: TradingView

Another analyst filbfilb thinks that the BTC price may close this month at $ 78,000.

“The good news that we see all the time makes me think it’s entirely possible,” Filbfilb said. he stated.

“At $ 50,000, you can easily experience a squeeze, volume data show this.”

Filbfilb had previously said that $ 52,000 was the last consolidation zone before the rise to $ 63,000.

Anti-crypto feelings the war is losing

Filbfilb talks about “good news” of big corporations buying BTC one after another.

In addition to Tesla, last week, BNY Mellon, the oldest bank in the USA, announced that it will offer cryptocurrency support to its corporate customers. Morgan Stanley also announced that he is considering investing in Bitcoin.

On the other hand, anti-Bitcoin counterparts are increasingly despairing that they cannot stop crypto money in traditional ways.

Nigerian politicians admitted last week that Bitcoin made local currencies completely worthless.

Senator Sani Musa, “Crypto money has become a worldwide transaction where you cannot determine who owns it” he stated.

“The technology is so powerful that I can’t see an arrangement we can make. Bitcoin has made our currency almost completely worthless and useless. “

$ 274k target in BTC price

Many indicators, both simple and complex, reveal that the Bitcoin price has a significant upward potential.

An analyst thinks the new data on the spot price show that the current situation is an exact replica of the previous bullish cycle.

Messari Researcher Jack Purdy, In his post on Sunday “The Bitcoin chart is almost EXACTLY the same as August 2017,” he noted.

“Anyone want to remember what happened next?”

Glassnode Co-Founder and CTO Rafael Schultze-Kraft said that according to the price behavior in 2017, Bitcoin could increase by 471 percent to $ 274,000.

Bitcoin miner exits historical chart. Source: Glassnode

Glassnode, on the other hand, pointed out that a factor has moved differently since Bitcoin’s last block award halving. Miners said compared to previous bull cycles even though the spot price was much higher selling less.

Biggest weekly close

Finally, Bitcoin held its biggest weekly closing in history last week.

Increasing $ 9,800, Bitcoin increased its value by 25 percent in just one week.

1-week candlestick chart (Bitstamp) of the BTC / USD pair. Source: TradingView

Even the correction just behind $ 50,000 after such a strong performance did not worry analysts.

Check Also

Long-term investors continue to accumulate as Bitcoin price drops

In the selling pressure seen in the cryptocurrency market on May 19, $ 1.2 trillion …

Leave a Reply

Your email address will not be published. Required fields are marked *