Has the time come for BTC to hit 50,000? 5 things to keep in mind about Bitcoin this week
So far nothing has been able to push the BTC / USD pair above $ 50,000 for a long time. Will this week be different?
The price of Bitcoin (BTC) is keeping everyone in suspense this week as another Monday starts below the $ 50,000 mark. After movements in the range over the weekend, the bullish momentum is still waiting for a decisive attack on the $ 50,000 mark. However, could it happen now?
Despite analysts’ optimism, it appears that even the Federal Reserve’s actions do not have the fuel to push the BTC / USD pair above crucial resistance. Cointelegraph looks at five things that could still give Bitcoin price a boost.
The dollar falls as stocks prepare to hit even higher highs
Stocks hit new all-time highs last week thanks to comments from Fed Chairman Jerome Powell.
As a result, the strength of the US dollar took a hit, and the US dollar currency index (DXY) began a multi-day downtrend.
Such conditions tend to be favorable for Bitcoin, and the lack of headwinds coming from the macro environment could help the bullish momentum.
“There is no question that Powell was dovish, relative to pricing and market positioning,” an analyst told Bloomberg, echoing the general feeling of Friday’s speech.
Resistance keeps Bitcoin’s bullish momentum at bay
Saturday and Sunday weren’t exactly boring for Bitcoin traders – two hikes above $ 49,000 gave them high hopes for the “big showdown” against the $ 50,000 barrier.
In the end, however, both attempts failed to break above $ 49,500, and the BTC / USD pair remained in a tight range in the upper $ 40,000 zone.
On Monday, the picture remains the same: the 47,000 mark is once again consolidated as support.
“I am bullish that Bitcoin will exceed $ 51,000, until then there will only be noise,” summed up Cointelegraph contributor Michaël van de Poppe at the end of the weekend.
In an uncertain environment, others warn that buying strength may still crumble in the near term to produce lower support retests.
“BTC keeps trying to hold this red zone as support, producing increasingly volatile bearish wicks below it,” commented trader and analyst Rekt Capital in an updated daily chart.
“The bearish part has been bought successfully so far, but this downtrend blue resistance continues to weigh on the price.”
A look at the buy and sell levels on the big exchange Binance on Monday underscores the relative lack of support well above $ 40,000, while firm resistance is in place above.
The hashrate retests the April drop zone
It is a situation that could still reproduce in other parts of Bitcoin beyond the spot price, the fundamentals of the largest cryptocurrency are also holding back its rapid growth.
After an impressive difficulty adjustment to the upside of 13.2% a week ago, Bitcoin is now facing the next one being almost flat – it is currently estimated to rise less than 1%.
This can still turn negative, marking a pause for thought among miners after a massive return to the grid in recent weeks.
However, if the difficulty increased, it would be the second streak of four consecutive difficulty adjustments for 2021.
Consequently, the network’s hash rate also remains at higher levels this week, approaching the 125 exahashes per second (EH / s) mark.
The hash rate has recovered very well since July, and is now only 40 EH / s from its all-time highs; it went up 4 EH / s since last Monday.
Investor and analyst Vince Prince noted that current levels echo the brief lows seen after April’s all-time highs for the BTC / USD pair. The hash rate then rallied to its own all-time highs before the defeat in China.
“The Bitcoin hash rate has already returned to the levels seen in November 2020,” added Anthony Pompliano last week, being even more optimistic.
“Anthony Pompliano last week, being even more optimistic.”
Assessing the Chances of Hitting $ 50,000
What are the odds that a rally to $ 50,000 will become the defining characteristic of the market this week?
As Cointelegraph reported, the next release of US employment data on Friday may already seal the deadline for a BTC price comeback.
The ingredients for this to happen are already in place: neutral funding rates across all trading platforms and a growing supply of stablecoins, exceeding $ 19 billion.
“Since rising $ 1.8 billion in a single day on August 24, stablecoins accumulated on centralized exchanges have exceeded 19 billion for a week,” on-chain analytics company CryptoQuant noted on Monday, citing data from CoinGecko. .
He added that the trading volumes of the major stablecoins have also increased; the market leader Tether
(USDT) increased 28% in the last five days.
Charles Edwards, founder of Capriole Investments, noted that Bitcoin’s decline in dominance, which is now 44%, is itself a trigger for the rise.
“This marginalized capital is like rocket fuel for when we start having daily closings above $ 50,000,” he argued.
What could be the sticking point? For analyst William Clemente, low volumes remain a short-term problem.
“If anything has me worried … this is it,” he summed up alongside a comparative graph of volume throughout the 2020-21 bull run.
“Where is the demand?”
The haunting calm continues for the feeling
The idea that Bitcoin is facing its “last hurdle” before challenging all-time highs is visible in traders’ sentiment.
After the BTC / USD pair surged 60% in weeks, sentiment also went from “extreme fear” to “extreme greed,” according to the Crypto Fear & Greed Index.
Now, as the pace of gains has slowed due to the $ 50,000 resistance, the “extreme” sentiment has also given way to a more moderate “greed” rating on the Index.
In fact, the month of August has been mostly stable for sentiment, which the Index has measured between 70 and 80 for the last three weeks.
This is the last chance to buy Bitcoin below $ 50,000. All-time high retests have a way of exploding and inducing massive FOMO and attention.
The ideal bull run combines strong price appreciation with a steady rise in sentiment; As history has shown, reaching the 95/100 standard upper zone on the Fear & Greed coincides too quickly with a BTC price sell-off.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.