5 things to see about Bitcoin this week

Bitcoin starts a new week with an important weekly closing. So can the price go higher?

After a weekend of moderate volatility including retesting the USD 30,000 support, BTC / USD is back above USD 35,000.

Despite the negative news, FUD and the actions of Chinese miners, the latest price action shows that BTC still has the energy to fight.

However, the risk of another recession remains and not everyone believes that the market has really bottomed out.

Kiyosaki: Prepare for “the greatest crash in history”

Not the US dollar but the stock leads this week as the S&P 500 had its best week since February.

Shares rebounded last week after fears about a Federal Reserve rate hike were eased. This is in contrast to the US Dollar Currency Index (DXY), which is cooling off. DXY has been falling in the past few days following a sharp escalation over the past week.

Commentators say that with the S&P 500 hitting an all-time high, there is still a risk of higher bond yields.

David Bassanese, chief economist at BetaShares, wrote in a note published by Bloomberg Quote:

“There is still a risk that bond yields will rise and stocks may pull back on the current strong US economic data. For now, at least, long-term bond yields are flat and stocks are more focused on a V-shaped recovery amid economic growth and corporate earnings. “

1-day candlestick chart of the US dollar currency index | Source: TradingView

However, with stocks hitting multiple highs despite the economic hardship caused by the coronavirus, Bitcoin proponents have long been predicting a disastrous day.

The most important among them is Robert Kiyosaki, author of the famous book “Rich Dad, Poor Dad”. I did to repeat his warnings on world markets on Monday.

“The best time to prepare for a crash is before the crash happens. The greatest crash in world history is imminent. The good news is that the best time to get rich is during a crash. The bad news is that the next crash will take time. Buy more gold, silver and bitcoin while you can. “

Bitcoin closes at a critical level every week

As for the spot bitcoin price, Sunday finally gave the bulls the happy ending they were looking for.

Late Saturday bitcoin price risks closing the week below the critical threshold required to see further upside opportunities. Fortunately, however, the week-end on Sunday brought some optimism back to the market.

In this case, BTC / USD even exceeded expectations as it surged above $ 2,000 on Bitstamp to a local high of $ 35,250, closing above $ 34,000 weekly.

This got the BTC price on track and in favor of the bulls, analyst Rekt Capital said before pricing data is available.

“BTC has bounced back to a higher weekly low and is about to flip it in support. Only a few hours left until the end of the week. A week end above the black higher low would be great for bullish momentum. “

BTC / USD with weekly final target | Source: Rekt Capital

In addition, as reported by Bitcoin Magazine, Rekt Capital is watching the Wyckoff scenario more aggressively, which includes a potential local top in the mid-range of $ 40,000.

Very nice weekly proximity #Bitcoin. Very, very nice, actually. pic.twitter.com/8Frmn4N7TU

– Tyler (@TylerDurden) June 28, 2021

“Bitcoin closed the week very well.”

Another popular trader on the social network described the aforementioned $ 2,000 gain as “significant” and focused on the $ 35,000 resistance level, along with Bitcoin’s rising Relative Strength Index (RSI), to avoid potential oversold (and overbought) ) Predict levels.

Bullish prices are also particularly helpful in correcting the “death cross” that has occurred in the past – where the 50-day moving average (50 MA) crossed the 200-day moving average (200 MA).

#Bitcoin #BTC #Crypto # Cryptocurrency 4h

???? #BTC BREAKING OUT#Bitcoin with a SIGNIFICANT lift-off

Soaring through the 50 MA and currently aiming for the $ 35,000 resistance level

RSI: leave more wiggle room to move to ‘70.00 ‘to keep momentum ???????? pic.twitter.com/HPaGt2nc6X

– Dom’s crypto world (@Doms_Crypto) June 27, 2021

“BTC outbreak with significant gains. Spike past the 50 MA and is currently aiming for the $ 35,000 resistance. RSI: likely rise to 70 and maintain momentum. “

The mining difficulty is expected to drop to a record

For those celebrating the biggest Bitcoin difficulty increase since 2014 just 6 weeks ago, here’s what they may be wondering about.

With network fundamentals struggling with the miners’ move in China, this week’s difficulty adjustment should show how badly recent events have been hit.

Over the next 4 days, the estimated difficulty level will decrease by around 23.24% – something that has never been seen in the life of Bitcoin.

The record downward adjustment difficulties are the result of mass shutdowns by Chinese miners and for some – including those who operate overseas – it was a gift.

A miner in North America said:

“The estimate of the difficulty adjustment is currently -21% and is expected to take place on July 1st. This will be the largest downward correction in Bitcoin’s history. North American miners take the opportunity. “

Such optimizations help keep Bitcoin mining competitive while maintaining network security. The lower level of difficulty encourages more miners to participate by making the process cheaper. This increases competition. In general, there will be larger drops after rallies.

“The hashrate can go down significantly, but the difficulty will only decrease as the network empties blocks and the remaining miners become much more profitable, selling fewer coins, driving prices up, incentivizing mining,” Saifedean Ammous said , Author of “The Bitcoin Standard”. Summary in a series of tweets on current events on June 25th.

“Difficulty adjustment is the magic factor that keeps Bitcoin going. That means Bitcoin mining is growing and shrinking to the size it takes to survive and empty blocks. “

Bitcoin 7-Day Average Difficulty Chart | Source: Blockchain

Hashrate (the amount of computing power that needs to be degraded) has been going down since China’s crackdown, but that metric is mostly an estimate that isn’t entirely accurate.

According to the MiningPoolStats, Blockstream CEO Adam Back’s preferred data, the hashrate is currently around 83 exahashes per second (EH / s), after its peak of 168 EH / s.

Drive global adoption further

The introduction of Bitcoin offers welcome support for the volatile spot market.

The new rule that came into force in El Salvador in September, which regards Bitcoin as legal tender, has had a domino effect.

The evidence is that Paraguay has submitted a bill to parliament, the details of which were not fully disclosed after the bill was presented 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 Forbes, affirmed Bitcoin as “new gold” over the weekend and revealed his own contribution to promoting local adoption.

According to the to confirm from Salinas on Twitter, his bank Banco Azteca is in the process of integrating BTC.

“Bitcoin is a great way to diversify a portfolio and I think every investor should start researching cryptocurrencies and their future. At Banco Azteca we try to bring them 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 frightened.

According to the classic sentiment measuring device, the crypto fear and greed index, the data on Monday was only 25/100 despite the price rally.

The trader’s cautionary indicator has fallen to a rare low in the last month, bottoming at 9/100.

Fear and Greed Index | source: alternative.me

Although the index has now almost tripled, sentiment among market participants remains “extreme fear” – which means that there is a lot of potential for big bull runs.

Conversely, “extreme greed” tends to lead to price drops.

You can see the BTC price here.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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According to Cointelegraph

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