Bitcoin (BTC) price makes a cautious start to the week when macro markets fluctuated and the Turkish lira lost 15 percent overnight.
Bitcoin rejected at $ 60,000 has caused traders to expect sideways movement in the coming days.
At Cointelegraph, we take a look at five factors that can affect the Bitcoin price action as the new week begins.
Stocks are silent
Concerns about bond yields and the continuation of the Corona virus outbreak created a hesitant picture across stocks.
The Asian market has opened with a modest move. With yields on 10-year bonds in the US 1.7 percent, the increase in economic activity will likely fuel bond concerns.
China is going for financial relaxation in a different style, and it is talked about the future of moves to reduce risk.
“This will not only provide positive incentives for economic players, but it will also reduce the likelihood of creating financial risks,” said Yi Gang, President of the Bank of China (PBoC), at the weekend.
As the vaccination process continues and spring is coming, anger is accumulating in many segments due to the fact that Corona restrictions are not lifted.
In a separate development, it draws attention to the financial turmoil in Turkey. As soon as the trading transactions were opened, the national currency, the Turkish lira, depreciated by 15 percent. President Recep Tayyip Erdogan dismissed another head of central bank, and this tension reflected negatively on the market.
Market commentator Holger Zschaepitz, “Turkey, the central bank chooses the worst time in expelling the president” said.
“Erdogan sacked President Agbal and replaced him with a professor who said that ‘high interest rates cause inflation.’ The increase in the current account deficit, depleted foreign exchange reserves and 16 percent inflation increase the likelihood of a currency crisis.”
Excitement in BTC price wanes
Investors, who were expecting a similar rally to the last weekend, were disappointed in the last two days.
Although analysts argue that the BTC / USD pair has generally broken up on Saturdays and Sundays, the pair has clearly bounced from near $ 60,000.
While preparing for the news broadcast, the Bitcoin price, which rose up to $ 57,700 on the Bitstamp stock exchange, had dropped to below $ 56,000 for a while.
Market commentator Michaël van de Poppe, a Cointelegraph writer, said that Bitcoin is moving in the region where it was expected. told.
He told his Twitter followers, “Bitcoin is so good so far, and that’s great.”
“The region of 55 thousand dollars is the region that should be given importance after the rejection of the resistance of 60 thousand dollars. We expect some horizontal movement.”
Analyst and trader Crypto Ed will continue to recover if the BTC / USD pair does not fall below $ 52,000. told.
Order book data on the Binance exchange reveals that support and resistance were found at $ 56,000 and $ 59,000 respectively on Monday. he states.
The difficulty continues to increase
Both the hash rate and difficulty were clearly rising as the news was getting ready for the broadcast. The hash rate was 4 percent from an all-time high, while the difficulty was moving at peak levels.
Increasing hash rate and mining difficulty may signal that the price will go up as well. In the last adjustment on March 19, the difficulty increased by 1.95 percent, and after the previous correction turned negative, it began to move to a region it had not reached before.
As Cointelegraph reported, while such adjustments are not the most important economic feature of the Bitcoin network, they constitute an economic structure that supports mining activity to change and increased security.
“Young” cryptocurrencies say the bull market will not end yet
Over-the-chain indicators paint a mixed picture of exactly where Bitcoin is in the bull market and how much more price increases.
However, in terms of sensitivity, there is plenty of room for action as investors who have held Bitcoin for a long time do not sell in bulk even at $ 60,000.
As data source Glassnode pointed out over the weekend, former investor cryptocurrencies are moving in line with the peaks of the previous bull cycle and have not yet declined. This indicates that there is still time to see the top of 2021.
When the bitcoin price is about $ 53,000, it reaches a market value of $ 1 trillion. However, this amount is not a sufficient incentive to mobilize funds held in wallets for a long time.
Statistician Willy Woo while interpreting“This is a pretty solid price confirmation; $ 1 trillion is already strongly supported by investors,” he said.
“We probably won’t see Bitcoin under $ 1 trillion again.”
Meanwhile, last week, Cointelegraph reported the views of PlanB, the developer of the stock flow price model, which predicts that the BTC / USD pair will not stop at $ 100,000 and will advance to an average of $ 288,000 this year.
Stock market reserves approached the bottom
According to data from stock exchanges, many long-term investors (hodlers) are not planning to sell in the near term.
The entry and exit of major trading platforms, compiled by on-chain data source CryptoQuant, points to a lack of willingness to sell in the short term.
Bitcoin had its biggest breakout since early March, just before reaching its current high of $ 61,700.
Last week, CryptoQuant CEO Ki Young Ju pointed out the lack of entry into the stock markets as part of the overall market picture. It will take some “time” for Bitcoin to break its $ 61,700 record told.
“It will take some time for BTC to take another step in terms of demand / supply,” he summed up.