Bitcoin (BTC), which rose to $ 58,000 on Monday, is pushing its previous record again. So what’s next?
Cointelegraph took a look at five factors that could affect Bitcoin price action in the coming days.
DXY rise did not affect Bitcoin
Asian markets started the week with losses due to reasons such as the worsening COVID-19 scenes in India. On the other hand, S&P 500 futures in the US have already started to show improvement after the losses suffered on Friday.
Unlike Bitcoin, other markets have not responded well to rumors that financial support measures implemented by some banks could be curtailed due to the epidemic.
While the stock markets depreciated, the US Dollar Index (DXY), which had been declining for a month, started to rise.
Bitcoin Price Index: How much is 1 Bitcoin in TL? (BTC TL)
While DXY and Bitcoin tend to show an inverse correlation, Friday was the exception, and the BTC / USD currency rose as high as $ 58,300.
Spot market rally takes over the scene
Bitcoin started the week by continuing its value increase, less than a week after its recovery after falling to $ 46,000.
BTC / USD, which was traded at $ 58,760, close to the record level in February, is moving towards $ 59,000 as of the time of translation.
The order book of the giant crypto exchange Binance shows that there is still strong resistance at $ 60k. In order to reach the current record of $ 64,500, a few more sales walls must be passed. Another strong resistance is located at $ 68,000.
On the support side, it is seen that there is a solid support at 52 thousand dollars, 50 thousand dollars and 48 thousand dollars.
On the other hand, with the increase in the number of stablecoins transferred to exchanges, Bitcoin could enter a new bullish phase. The increase in the number of stablecoins on exchanges reveals increased buyer interest as these assets are often used to buy cryptocurrencies.
Cat and mouse game with Ethereum
According to another theory, Bitcoin may try to catch up with the rising altcoin market led by Ether (ETH).
Bitcoin has gained 11 percent in the past seven days, versus Ether, which has risen to $ 3,200 in the last 24 hours and gained 28 percent throughout the week.
Bitcoin’s market dominance also dropped to 47.7 percent, the lowest rate seen since July 2018.
On the other hand, on-chain monitoring source Glassnode found that Ethereum’s network value / transaction ratio (NVT) also showed a strong image. In other words, the organic transaction volume supports the price increase.
Glassnode, he explained as follows:
“As the Ether price goes up, the NVT rate is falling. The low NVT rate indicates that the transaction volume is high and the network is rising faster than the market cap. On-chain volume is supporting the rise in the Ether price. “
Hash rate has fully recovered
Going back to Bitcoin and network fundamentals, network fundamentals, which have experienced some sort of “reset” in recent weeks, are also trying to recover.
First of all, due to the flood in China, some miners stopped their activities and there was a serious decrease in hash rate. There was a 12 percent decrease in automatic difficulty correction after two weeks.
Although the hash rate stabilizes completely after the drop, to 161 EH / s, the difficulty is estimated to drop another 7 percent.
Ambition is back to the markets
With the rise in spot markets, a familiar shift was observed in sentiment.
The Crypto Fear & Ambition Index shows that the sentiment score has returned to the “greed” zone after doubling last week.
About: What is the Crypto Fear & Ambition Index?
Although the index reached 61/100 points as of the beginning of the week, it is still far from the “extreme ambition” zone. This shows that the price increase is more likely to continue.