5 things to watch for Bitcoin this week

Bitcoin (BitcoinAs the bulls firmly dominate, this week is about to launch a second attack on key resistance.

After experiencing a rise of $48,000 and a major rejection of that level, Bitcoin has returned, making up for all losses.

As conditions are generally conducive to continued strength, it may only be a matter of time before the next driving change reshapes the BTC/USD spot market.

Cointelegraph proposed five factors worth considering when assessing where Bitcoin might go in the next few days.

Bitcoin returns to challenge $48,000

This weekend is a self-made story for Bitcoin.

After BTC/USD jumped above 47,000 U.S. dollars, it started to move higher on Saturday, and the area immediately bordered on the huge resistance wall that still exists so far.

Subsequent failed attacks on the area were Sharp reversal, As Bitcoin fell to Local lows USD 45,500 before restoration.

The recovery throughout Sunday finally brought Bitcoin back to where the weekend started, and Monday’s picture provided traders with a strong sense of deja vu.

“Bitcoin needs to regain $46,500,” Cointelegraph writer Michaël van de Poppe warn Before confirming the latest startup.

“If this happens, then I assume that the high will be tested again. If not, the next is $44,000.”

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Considering the possibility of a semi-final, the seller still insists on $48,000.have a look Buy and sell levels The level of resistance is shown on the main exchange Binance, and the support level of $45,000 is now also large.

BTC/USD trading level (Binance) as of August 16. Source: Material Indicators/ Twitter

Trader and analyst Rekt Capital also considered the ascending triangle structure of BTC/USD and provided a test of its upper limit on Sunday, but did not break through.

“In the last successful retest attempt, BTC formed a new low,” he said Tweet on Monday.

“Has $BTC now transitioned to the current market structure?”

BTC/USD ascending triangle structure.Source: Rekt Capital/Twitter

Computing power, difficulty points to the sky

Some familiar good news from familiar sources: Bitcoin network fundamentals are still climbing to historical highs.

After the latest automatic adjustment on Friday, the difficulty increased by 7.3%, completing the best performance since Bitcoin’s May price sell-off.

Bitcoin difficulty chart.Source: Blockchain

As Cointelegraph Continue to reportAfter being forced to leave China, mining rights are returning to Bitcoin, while existing businesses are increasing their capabilities.

The result is a greater Bitcoin mining hash rate, and with it more competition for Bitcoin block subsidies, this process in turn leads to an increase in the difficulty of maintaining network balance. This also improves network security and emphasizes the long-term commitment of miners to Bitcoin—to invest in profits.

On Monday, the hash rate remained at 113 exahashes (EH/s) per second, and is now firmly above the 100 EH/s mark and 30 EH/s above the low point after May. According to monitoring resources, the historically highest hash rate in place before the Chinese incident was 168 EH/s Pool statistics.

Dollar cheers celebrating 50th anniversary

From the broader macro environment this week, favorable headwinds seem to enhance Bitcoin’s strength.

After the hard end of the dollar this week, Monday has only achieved a modest reversal so far. This weekend marks the 50th anniversary of the end of US dollar gold convertibility in the United States. Although the weakness of the US dollar does not guarantee easy returns for BTC, it is still a useful indicator of the potential of the crypto market.

At the time of writing, the US Dollar Currency Index (DXY) is 92.6, which is lower than last week’s above 93.

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

in a Market summaryJustin d’Anethan, director of exchange sales at Nasdaq-listed cryptocurrency company EQONEX, reiterated that the depreciation of the U.S. dollar may also become a boon for hedging assets such as gold.

“People can also observe the dollar falling, supporting risky assets and gold, and trying to make a comeback,” he wrote on Monday.

“In the crypto space, you can also feel bullish; investors are now much wealthier than last week or the previous week.”

D’Anethan also hopes that the US government will provide additional macro catalysts in the form of a controversial infrastructure bill to revise its crypto tax language in the near future.

“If a looser wording can be passed, it will be very supportive,” he added.

Greed reaches its highest point since April

Slightly corresponding to the desire for Bitcoin’s continued bullish momentum is market sentiment, which is already flirting with “extreme”.

These are Crypto Fear and Greed Index, Refreshed the highest score in four months over the weekend.

Using a basket of factors to determine whether cryptocurrencies are generally oversold or sold at a specific price, the index reached 76/100 on Sunday, corresponding to “extreme greed.”

In contrast, just last month, it measured 10/100-the opposite of today, that is, “extreme fear.”

Therefore, Bitcoin’s potential further attack on $50,000 may once again subvert market sentiment, increasing the risk of subconscious corrections as the market moves towards its historical highs in April.

Crypto Fear and Greed Index as of August 16. Source: Alternative.me

Altcoins shine as Bitcoin circulates

The loss of one coin this week is the gain of another coin-it seems that altcoins may be the main beneficiary of the current sentiment.

related: The 5 most noteworthy cryptocurrencies this week: BTC, ETC, LUNA, KLAY, AXS

Compared to a week ago, Bitcoin is up about 8%, but the major altcoins still outperformed their gains.

Among the top 50 cryptocurrencies by market capitalization, many cryptocurrencies have a weekly return rate of more than 20%, of which Solana (Sol) Leading with 60% on Monday.

As Cointelegraph ReportPeople have high hopes that some form of “alternative season” can still return this summer, which may be due to the revival of DeFi.

Despite its strong performance, Bitcoin’s market value accounts for 43.7%, but its market value dominance is also declining, which opens up the potential for altcoins to enter the fourth quarter.