Bitcoin’s Weekly Watchlist: 5 Must-See Indicators for Informed Decisions!
Bitcoin (BTC) starts a new week with an important weekly end and all to play with – can it hold higher?
After a weekend of moderate volatility including retesting the USD 30,000 support, BTC / USD is back above USD 35,000.
Despite negative press, FUD and miner wobble from China, the latest BTC price action shows that the largest cryptocurrency still has energy to fight.
However, the risk of a further downturn remains and not everyone is convinced that the market has really bottomed out.
Cointelegraph is looking at five factors to determine where Bitcoin is next in the coming days.
Kiyosaki: Prepare for “the greatest crash in history”
It was stocks rather than the US dollar that led the field this week as the S&P 500 had its best week since February.
After concerns about the Federal Reserve’s rate hike subsided, stocks rallied last week. This is in contrast to the cooling US dollar currency index (DXY), which has lost some of its upward momentum in the past few days after a massive surge last week.
With the S&P 500 hitting an all-time high, the risk of change remains inevitable, commentators argue.
David Bassanese, chief economist at Australian fund company BetaShares, wrote in a statement quoted by Bloomberg: “The risk in bond yields is higher – and likely to pull stocks back down – based on data on whether a strong US economy is on the way .
For now, at least, long-term bond yields are flat and stocks are more focused on a V-shaped rebound in economic growth and corporate earnings.
1-day candlestick chart of the US dollar currency index. Source: TradingView
However, amid reports of persistently higher stock highs despite the economic hardships caused by the coronavirus response, Bitcoin proponents have long been predicting a settlement day.
The most important among them is Robert Kiyosaki, author of the popular book “Rich Dad, Poor Dad”, who repeated his warnings about global markets on Monday.
“The best time to prepare for a collision is before impact. The greatest accident in world history is imminent, “he” told Twitter followers.
The good news is that the best time to get rich is during a downturn. The bad news is that the next crash will be a long one. Get more gold, silver, and bitcoin while you can. Care of.
Bitcoin closes weekly shutdown …
As for the spot bitcoin price, Sunday finally gave the bulls the happy ending they were looking for.
This is particularly relevant with regard to the end of the week, which threatened to reach below the critical level on late Saturday in order to preserve further upside opportunities.
In this case, BTC / USD exceeded expectations, climbing over $ 2,000 in the night hour to hit a local high of $ 35,250 on Bitstamp and a weekly close above $ 34,000.
This brings the pair to bear and is “great for bullish momentum,” former Rekt Capital analyst speak before entering data.
BTC / USD chart with weekly closing price. Source: Rekt Capital / Twitter
As Cointelegraph reported on Sunday, Rekt Capital could therefore continue to pursue a more aggressive Wyckoff scenario that includes a potential local high in the mid-range of $ 40,000.
– Tyler (@TylerDurden) June 28, 2021
Another popular social media retailer Is called A “significant” surge overnight and the focus on the USD 35,000 resistance paired with Bitcoin’s growing Relative Strength Index (RSI) to hit potential oversold (and overbought) levels.
Further gains would also help correct the so-called “death crossover” that occurred earlier – where the 50-day moving average crossed the 200-day moving average in one movement received.
… But will reduce the difficulty record
There is bad news for supporters of Bitcoin’s biggest emergency surge since 2014, just six weeks ago.
With networking fundamentals struggling after China’s mining relocation, this week’s difficulty adjustment should show how badly recent events have been hit.
Over a four-day period, the estimated difficulty level will decrease by around 23.24% – something that has never been seen in the life of Bitcoin.
The record correction downward was in response to the mass shutdowns of Chinese miners and a gift for some – including those abroad.
The estimated difficulty adjustment is currently -21% and targets July 1st.
This will be the largest downward correction in Bitcoin’s history.
North American miners are about to EAT.
– Baylor Landry (@TexanHodl) June 26, 2021
Such adjustments keep Bitcoin mining competitive while protecting network security. The lower level of difficulty encourages more miners to participate by making the process cheaper. This in turn increases competition, which means that larger recessions generally lead to increases.
“The mining hash rate can drop significantly, but the difficulty of just tweaking the network will delete blocks and the remaining miners will be much more profitable by selling fewer coins, which will drive the price up.” Ammus, author from “The Bitcoin Standard”, Summary in a series of tweets about current events last week.
The difficulty adjustment is the magic sauce that makes Bitcoin work. That means Bitcoin mining is growing and shrinking to the size it needs to survive and continues to erase blocks.
Bitcoin 7 Day Average Difficulty Chart. Source: Blockchain
As Cointelegraph reported, hash rate – the amount of computing power devoted to mining – has declined since the fall of China, but the extent depends heavily on the estimates used.
According to MiningPoolStats, blockstream CEO Adam Back’s preferred data, the hash rate is currently around 83 exahashes per second (EH / s), after a peak of 168 EH / s.
Drive global adoption further
A microcosm of Bitcoin acceptance offers welcome relief to the volatile spot market.
As Cointelegraph reported, El Salvador has created something of a domino effect with its law that Bitcoin will become legal tender in September.
Paraguay will next submit a bill to parliament, the details of which will not be fully disclosed after a bill is submitted on June 24th.
Elsewhere, while there have been no official changes to the status of Bitcoin, supporters appear to be encouraged by recent events.
Ricardo Salinas Pliego, the third richest person in Mexico according to the Forbes ranking, affirmed Bitcoin as “new gold” this weekend and revealed his own contribution to local acceptance.
Its banking business, Banco Azteca, is in the process of incorporating BTC, Salinas confirmed on Twitter.
“Bitcoin is a great way to diversify your portfolio and I think every investor should start researching cryptocurrencies and their future,” he said. Written.
At Banco Azteca we work to bring them closer to our customers and continue to promote freedom.
All in an atmosphere of “extreme fear”
Even after a daily gain of 5%, the mood around Bitcoin is still driven by fear.
This is the classic sentiment meter, the Crypto Fear & Greed Index, which measured only 25/100 on Monday despite the price rally.
As a moderate indicator of trader caution, Fear & Greed fell to a rare low last month, only hitting 9/100.
Crypto Fear and Greed Index. Source: alternative.me
Although his score has nearly tripled, the feeling among market participants is still “extreme fear” – meaning that there is a lot of potential to hit big bull runs.
The opposite end of the spectrum, “extreme greed,” tends to cause prices to fall.