5 Bitcoin Things to Watch Out For This Week

Bitcoin heads into a new week with neutral price action and bullish fundamentals. What can the coming days bring us?

The $ 30,000 support still holds up, but it seems little trader can really excite. On the other hand, volatility has been slowly returning to the charts over the past week.

As mining activity continues to rebound, people are playing a “wait and see” game when it comes to the 2021 bitcoin bull market.

The article deals with 5 things that could affect BTC price trends in the short term.

U.S. dollar get stronger when quiet stock market as

It was a classic summer picture for stocks – declining slightly last week after rising steadily, fueled by cautious sentiment from Covid-19, inflation and other triggers.

This time of year has a reputation for doing little, however, and even the most recent changes have been more limited.

Lori Calvasina, Head of US Equity Strategy at RBC Capital Markets, writes in a Note Quote from Bloomberg:

“Covid is just one of several factors that can have a negative impact on trade in an inflationary phase.”

The US dollar gained some strength on the modest stock shake, with the US dollar currency index (DXY) rising to 93.

Reportedly, the inverse correlation of DXY with Bitcoin is still being noticed by some. The short-term high index may correspond to the price pressure for BTC / USD.

Another focus is on oil after tensions between OPEC + members were eased and a new agreement to increase production was signed. While oil has traditionally had less of an impact on Bitcoin, any unexpected volatility can fuel the low volume crypto market.

This was seen last week when reports from Bank of America greening Bitcoin futures trading for a select number of customers quickly sent BTC / USD up $ 1,000.

Actions by another bank, namely the Federal Reserve (Fed), could be more important this week. A stablecoin working group caught Treasury Secretary Janet Yellen’s attention when it was convened on “home affairs”.

Weekly candles increase the downside risk over 29.000 dollar

On the spot market, Monday begins with hope for the future rather than with confidence in current price developments.

Over the weekend, BTC / USD wobbled and is still unable to beat the USD 32,000 or higher resistance, but is also likely to avoid a test of the USD 31,000 support.

At the time of this writing, $ 31,750 ($ 31,750) has been focused on the lower time frames, with range trading action showing on the hourly chart.

1 hour candlestick chart BTC / USD | source: TradingView

“Time for a Green Week for Bitcoin”, boldly the famous trader Michaël van de Poppe suspect.

The discussion of when the Bitcoin price could bottom out is still a major topic. The decline from the all-time high of $ 64,500 has now lasted more than 3 months – the second longest ever in a bull cycle, as was noted on Sunday.

With public opinion in favor of a return below $ 30,000, Van de Poppe argues that the bottom may not be as dramatic as expected.

Brothers speak with Twitter followers:

“The bottom is usually not too deep as most people expect more downward movements in the market. A bad weekly candle doesn’t mean the price will keep falling. “

The weekly candle was indeed disappointing as the BTC / USD weekly close on Sunday was its 2021 low so far.

For trader and analyst Rekt Capital, the failure to reclaim $ 32,000 opens the way to the $ 29,000 region.

“Bitcoin is in danger of losing weekly support (~ $ 32,000). Today is the last day BTC regained that support. The loss and the lower support in the higher timeframe prevent BTC from entering the green zone, ”he warned on Sunday along with an accompanying chart.

BTC / USD scenario with support and resistance zones | Source: Rect capital

Level of difficulty beyond expectations

Contrary to price, the Bitcoin network fundamentals continued to perform strongly after the unprecedented events of May and June.

Hashrate The network remains above a local low of 83 exahashes per second (EH / s) and sees no further major setbacks from relocating miners from China.

The real signs of progress, however, lie in the difficulty.

The weekend autocorrection dropped the difficulty level by a modest 4.8% – a pleasant contrast to earlier estimates. Two weeks ago it was predicted that the difficulty level would drop more than ever – almost 29% – and slowly improve over a two-week level of difficulty.

Bitcoin is now on track for its first positive correction since the price crash in May.

These changes say Bitcoin will stay steadfast and encourage miners to get back on the network while still processing transactions unhindered.

As a result, commentators believe the worst of the recent upheaval is definitely over.

Kevin Zhang, vice president of Foundry Services digital currency consulting firm for Digital Currency Group, said Weekend:

“The uncertainty of the difficulty adjustment due to the raids in China will end after this adjustment. Wait and see how the hashrate and difficulty slowly recover from here. “

Difficulty table Bitcoin | source: Blockchain

Meanwhile, both hashrate and difficulty fell below the level when the block reward halving happened in May 2020.

Funding rateS. still low

Funding rates across stock exchanges remained neutral or slightly negative during the most recent price movement – a hopeful realization in the minds of traders.

As reported, individual large whales tend to sell at the current level, while other investors, conversely, buy into the supply.

In terms of volume, however, Bitcoin is predictably uninteresting at $ 30,000. Both futures and PayPal volumes have declined significantly, with futures volume returning to levels from late last year.

Open futures (gold) and volume (black) | source: Bybt

S.The infamous Bitfinex hoard reduction

The price movement on the weekend is accompanied by fluctuations in betting for high volume investors.

Short positions in Bitfinex, a driver of short-term volatility as seen over the past few weeks, rose and fell steadily.

The short position continued to decline on Monday as the market waited for signs of general direction.

Candle chart with short order BTC / USD 1 day | source: TradingView

At home at home

According to Cointelegraph

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