Bitcoin (Bitcoin) Entering a new week after closing the weekly candles and earning another $4,000, which makes the bulls happy-can it hold it?
After being touched for most of the past 7 days but then falling back from local highs, the market sentiment towards the weekend was mixed.
As a result, Saturday and Sunday are exactly what the bulls have been waiting for. Bitcoin passed multiple resistance lines and rose above $45,000.
With the feeling that everything can be played, the bulls are now full of confidence, but also realize that anything can happen in Bitcoin.
Cointelegraph proposed five factors that may affect the price trend of BTC in the next few days.
D-Day of the Infrastructure Act Tuesday
Like last week, the specter of U.S. lawmakers loomed over the cryptocurrency industry on Monday.
Unofficially called the Infrastructure Act, it continues to generate heated debates and is expected to Put to vote Tuesday.
In the $1 trillion bill, there is a $30 billion cryptocurrency issuance aimed at overhauling corporate tax obligations. It was this point that caused an uproar in the industry-even the US senator proposed amendments to change the wording of the bill.
As the deadline on Tuesday approaches, market participants now accept that even if the result is not so good, the encryption element has at least caught the attention of all relevant personnel.
“The first thing cryptocurrencies do here is to make sure that Washington knows that there is a clause in the bill that needs to be clarified. That was a success!” Sam Bankman-Fried, CEO of the trading platform FTX, said in a series tweets Regarding the bill on Sunday.
“Washington is very clear now.”
There is no other way but to wait, and the market may remain sensitive to rumors and general speculation about the bill until it becomes a reality.
Bankman-Fried concluded that any resistance from the cryptocurrency space should be constructive.
“But, fundamentally: the most important thing now is not to let the cryptocurrency’hear its voice’,” he continued.
“This is to propose a reasonable and sincere compromise and make it clear that this is the goal.”
Gold hits four-month low
In addition to paperwork, the overall macro environment presents a mixed picture of Bitcoin’s prospects.
After the precious metals fell in early trading on Monday, the stock market performed flat, which may explain the decline in the cryptocurrency market to some extent.
After starting at $1,763, Gold fell sharply It even saw $1,686 before the rebound, capitalizing on Friday’s loss and hitting its lowest point since the end of March.
Although traditionally consistent with the price of gold and vice versa, supporters of Bitcoin quickly made fun of it in the market.
-Carlos Gomez (@hedgefundcarlos) August 9, 2021
“We will observe the contraction of gold market value in real time over the next ten years,” investor and podcast host Anthony Pompliano Comment.
“It will be so obvious in hindsight.”
Others pointed out that there is a correlation between Bitcoin’s outstanding performance and the progress of the U.S. Senate, which means that the trend may be reversed.
BTC price trend beats resistance
Against this background, Bitcoin has performed particularly well in recent days-to the chagrin of bear markets everywhere.
Over the weekend, Bitstamp’s price rose above US$45,400, marking a turning point, and then a relatively mild correction to around US$43,500.
At the time of writing, this level is still a focus, with BTC/USD closing close to $4,000 each week.
“This week, BTC is fully confirmed to have broken through the range of several months,” trader and analyst Rekt Capital Summarize.
“BTC withdrew its 200-day moving average as support, which is a long-term indicator of investor sentiment. BTC also retested its 21-week moving average as support, which is a bull market indicator that has passed the test of time. This is a great week.”
These averages have previously attracted the attention of experts, and Bitcoin has struggled to make progress for most of the last week.
have a look Buy and sell levels For example, among traders at Binance, the degree of support/resistance “rollover” that has occurred is now shown. The $41,500 level has become a solid support, and sellers have closed higher above Sunday’s high.
“A green week in the market,” trader and Cointelegraph writer Michaël van de Poppe Add to.
“I really want to know if the next week will be another green week, or if Bitcoin and Ethereum will undergo a healthy adjustment.”
A record increase in difficulty approaching several months
After flipping between two to three numbers, the hash rate estimate now shows that the hardware contribution to Bitcoin has stabilized at more than 100 exahashes per second (EH/s).
The 105 EH/s reading on Monday was more than 20 EH/s higher than the June low and about 63 EH/s lower than the historical high.
At the end of July, the difficulty saw its first positive adjustment in two and a half months, and it was ready to surpass itself and jump by more than 7% in three days.
Both of these fundamentals imply a strengthening of the mining industry, thanks to the move of displaced miners from China to new jurisdictions and hardware that was also shipped elsewhere.
Analyzing behavior since mid-July, statistician Willy Woo Comment On the relationship between rising fundamentals and spot prices-the mantra of “price follows hash rate”.
“The fundamentals cannot predict short-term prices, but if there is enough time, price discovery will return to fundamentals,” he said.
An accompanying chart analyzing the decrease in BTC supply adds that the current price of BTC/USD is estimated to be higher than $53,000.
The market is already flirting in “extreme greed”
At the same time, the correlation between prices and market sentiment may make those who bet on continued increases to be more alert.
This Crypto Fear and Greed Index, Was still in the “neutral” field just a few days ago, and quickly turned into “greedy” at the weekend.
The Fear and Greed Index considers factors in a basket of sources to compile an overall cryptocurrency index between 0 and 100, where 100 is the greatest greed.
On Sunday, the index reached 74, which is close to “extremely greedy”, even though BTC/USD rose by a relatively modest $5,500 in a week.
“This is an extraordinary three-month high,” investor and analyst Vin Springs reacted To adapt to the pace of change.
The correction is consistent with the price. On Monday, Fear and Greed returned to 65, still expressed as “greedy.”
At the peak of the bull market, there is a 95/100 score-this zone is consistent with the subsequent retracement.