China’s fear is now the infrastructure bill fear – 5 things to watch for Bitcoin this week


Bitcoin (Bitcoin) It is the beginning of another week. China’s latest “ban” is behind-but its next “FUD” story is already in the making.

America’s The infrastructure bill is back on the table, This week may see a decisive vote on possible changes to the cryptocurrency business.

At the same time, fundamentals and on-chain indicators continue to be more bullish than ever, with traders betting-in the worst-case scenario-that the price will moderately fall to a bottom of no less than $36,000.

What are the odds? Cointelegraph studied five things that may drive the market in the coming week.

D-Day of the Infrastructure Act

This week, as lawmakers determine the fate of the so-called “Infrastructure Act,” the macro narrative shifted from China to the United States.

HR3684It has just been approved by the Senate, and a final vote should be held on Monday-although there are rumors that it may be postponed.

The bill includes a Controversial description A “broker” may have a profound impact on the U.S. crypto business. Efforts to change the language are still ongoing, led by figures such as Wyoming Senator Cynthia Lummis and advocate Caitlin Long.

The current text describes a broker as “anyone (as a consideration) who is responsible for regularly providing any service that implements the transfer of digital assets on behalf of another person.”

As of September 27, the bill has received 539 amendments.

Although HR3684 may be a thorny issue in the local encryption industry, it can be said to be irrelevant for experienced Bitcoin holders.

Nevertheless, in the context of the latest Chinese “ban” collapse, Market sentiment is very sensitive to the “FUD” story of any quarter.

“Bitcoin is a bipartisan cooperation. Digital assets have nothing to do with politics,” Senator Lummis Summarize On Twitter before voting day.

The cryptocurrency market is expected to have a “green week”

With the BTC/USD rebounding to 44,400 USD, this is a familiar story of the BTC spot price trend on Monday.

This heralded the beginning of a resistance level, which finally triggered a rejection last week after the currency pair briefly broke through $45,000.

So far, this breakthrough attempt has not been much different, failing to hold $44,000 at the time of release.

Nevertheless, compared with the regression prediction Mid $30,000 range Being late for Sunday, the latest developments are refreshing.

“I look forward to a green week for Bitcoin,” Cointelegraph writer Michaël van de Poppe Summarize Sunday night.

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

The weekly closing price that has caused controversy in recent days did not disappoint, closing at $43,144— above The lowest cut-off point emphasized by some traders.

Trader and analyst Rekt Capital had Require The closing price was $43,600, which failed to be cashed out on time, but did not appear until a few hours later.

“BTC continues to be sandwiched between the support of the Pi-period 111-day moving average and this immediate red resistance zone,” he added Further comments.

“This price compression does form a clear market structure here, which may be an early ascending triangle.”

BTC/USD scenario.Source: Rekt Capital/Twitter

Lightning Network achieves basic growth

Since it is estimated that the difficulty has increased for the sixth consecutive time, the fundamentals of the Bitcoin network have laughed for another week in a row.

following Last week’s For the fifth consecutive rise-which is a rare feat in itself-the data shows that in eight days, Bitcoin will further adjust its difficulty upwards. This will be the first six consecutive increases since seven in mid-2019.

This is not just difficult-the hash rate is now about 145 exahashes (EH/s) per second, which is only 23 EH/s from the historical high.

The statistics are will Belief in miners and the extent to which they have come back since China’s massive exodus four months ago.

On the consumer side, this story is equally impressive.Lightning Network, just adopted in El Salvador Success story, The capacity is close to 3,000 BTC. Since the beginning of 2021, this capacity has almost tripled.

“The capacity of the Public Lightning Network has just exceeded 2,900 BTC. More than 400 BTC has been added in the past 10 days,” investor Kevin Rooke Comment There is a chart next to it.

“Find me a nice chart, I’ll wait…”

Bitcoin Lightning Network capacity and BTC/USD chart. Source: LookIntoBitcoin

lightning constitute A so-called “layer 2” protocol that can immediately settle BTC transactions off-chain at a cost close to zero.

Last week, Twitter became The first major partner The payment gateway Strike implements Lightning Network tips.

Feel the fear?

Crypto market investors a lot of Cold hands and feet-emotional expression Crypto Fear and Greed Index It can be seen how nervous they are.

Late last week, before BTC/USD began to rise to $53,000, the index fell to its lowest level since mid-July, and the index used a basket of factors to determine sentiment.

However, this time it was 40,000 USD, not 30,000 USD, which is the focus of the price.

As of Monday, the index rose slightly to 27/100-still firmly in the “fear” zone.

Crypto fear and greed index chart. Source: Alternative.me

In the institutional world, Negative funding rate It also helps provide cautious optimism about continued upside potential.

As analysts often point out, just when everyone tends to be bearish, this is the ideal time to go long BTC and thwart most speculators.

“never Gonna Give You Up…”

These words, and other excerpts from the British singer Rick Astley’s 1987 song of the same name, have become memes for Bitcoiners.

related: Top 5 cryptocurrencies worth watching this week: BTC, AVAX, ALGO, XTZ, EGLD

They described the mentality and investment habits of holders who never sell their BTC under any circumstances.

In the long-term market participants, resisting any storm is an incentive, but now, “Rick Astley” investors may even be pointing the way to a record high.

Bitcoin “Rick Astley” investment stage and BTC/USD chart.Source: Willy Woo/Twitter

As analyst Willy Woo pointed out, those Rick Astleys are already hoarding Long and difficult, From a historical point of view, good times are now coming.

“Bitcoin has entered the Never Gonna Give You Up phase of Astley Cycle,” he said debate There is also an interesting chart next to it that compares Rick Astley’s buying habits with the price movements of BTC.

The impact may come sooner than many people think. In the case of a sudden increase of $2,000 on Sunday, Van de Poppe called for a “gathering” across Bitcoin and altcoins.

More broadly, powerful people control more and more parts of the BTC supply, Cointelegraph Report, This number reached the highest level since October 2020 this month.