Is the timing of 50,000 USD BTC right?5 things to watch for Bitcoin this week


Bitcoin (Bitcoin) Everyone is guessing this week, because the price on another Monday is less than $50,000.

After the weekend range volatility, the bulls are still waiting for a decisive attack on the $50,000 mark-will it happen now?

Although analysts are optimistic, it seems that even the “super dovish” Fed has no incentive to push BTC/USD above key resistance levels.

Cointelegraph studied five things that can still provide new impetus to Bitcoin.

As the stock market hits higher highs, the dollar falls

Stocks are hit Historical high In the context of comments made by Fed Chairman Jerome Powell last week.

Correspondingly, the strength of the US dollar was hit, and the US dollar currency index (DXY) began to fall for many consecutive days.

This situation is often in favor of Bitcoin, and the lack of headwinds in the macro environment may help the bulls.

“There is no doubt that Powell is dovish relative to market pricing and positioning,” an analyst Tell Bloomberg echoed the general feeling in Friday’s speech.

DXY 1-day candlestick chart. Source: TradingView

Resistance keeps Bitcoin bulls under control

For Bitcoin traders, Saturday and Sunday are not completely boring-the two rises of more than $49,000 give them hope for a “showdown” with the $50,000 mark.

However, in the end, both attempts failed below $49,500, and BTC/USD remained within a narrow range above $40,000.

On Monday, the situation remained the same, with $47,000 now regaining support.

“It is bullish for more than $51,000 in Bitcoin, and it was just noise until then,” Cointelegraph writer Michaël van de Poppe Summarize As the weekend ends.

In an uncertain environment, others have warned that buyer power may collapse in the short term to generate lower support and retest.

Trader and analyst Rekt Capital said: “BTC is still working hard to use this red zone as a support, generating increasingly unstable downward wicks below it.” Comment On the updated daily chart.

“So far, the downside has been successfully bought, but this blue downward resistance continues to weigh on prices.”

have a look Buy and sell levels It was emphasized on the major exchange Binance on Monday that there is a relative lack of support well above $40,000, and there is solid resistance above it.

BTC/USD trading level (Binance) as of August 30. Source: Material Indicators/ Twitter

Hash rate retests April’s drop zone

In addition to spot prices, this situation may appear elsewhere in Bitcoin-fundamentals are also slowing its rapid growth.

After making an impressive 13.2% upward difficulty adjustment a week ago, Bitcoin is now considering the next almost flat – Less than 1% It is currently estimated to be added.

This may turn negative, which indicates that miners have paused their thinking after returning to the network in large numbers in recent weeks.

However, if the difficulty still increases, it will complete the second round of four consecutive upward difficulty adjustments in 2021.

Correspondingly, Network hash rate It also hovered at a high level this week, approaching the 125 exahashes per second (EH/s) mark.

Hash rate has been restored very good Since July, it is now only 40 EH/s from the all-time high, an increase of 4 EH/s since last Monday.

Investor and analyst Vince Prince further famous The current level corresponds to the short-term low after BTC/USD hit a new all-time high in April. Before China’s crash, the hash rate rebounded to a record high.

“Bitcoin’s hash rate has returned to the level of November 2020,” the more optimistic Anthony Pompliano Add to last week.

“I won’t be surprised to see the hash rate hit a record high by the end of the year.”

Chart of Bitcoin’s 7-day average hash rate.Source: Blockchain

Estimated opportunity of $50,000

How likely is the bull’s $50,000 onslaught to become a decisive market feature this week?

As Cointelegraph Report, The US employment data to be released on Friday may have set the deadline for BTC’s comeback.

The elements to achieve this goal are already widely available-neutral financing rates across trading platforms and an ever-increasing supply of stablecoins, exceeding 19 billion U.S. dollars.

“Since a single-day surge of 1.8 billion U.S. dollars on August 24, the accumulated stablecoins of centralized exchanges have exceeded 19 billion for one week in a row,” On-Chain Analysis Company CryptoQuant Citing CoinGecko’s data on Monday pointed out.

It added that the trading volume of major stablecoins has also increased, as far as market leader Tether is concerned (USDT) It has dropped by 28% in the past five days.

Charles Edwards, the founder of Capriole Investments, also pointed out that Bitcoin’s dominance is declining, currently at 44%, which in itself is a waiting bull market trigger.

“When we started to close at more than $50,000 per day, this marginalized capital was like rocket fuel,” he said debate.

What could be the crux? For analyst William Clement, low volume is still a problem in the short term.

“If there is anything that worries me, it is this,” he said Summarize And the comparison chart of the volume of the bull market in 2020-21.

“Where is the demand?”

Bitcoin transaction volume chart.Source: William Clement/Twitter

The creepy calm continues as emotions

The idea that Bitcoin is facing the “last hurdle” before challenging its all-time high can be said to be obvious in the mood of traders.

related: The 5 most noteworthy cryptocurrencies this week: BTC, ADA, LUNA, VET, XTZ

According to the Cryptocurrency Fear and Greed Index, after BTC/USD rose by 60% in a few weeks, the mood also changed from “extreme fear” to “extreme greed”.

Now, as the pace of rise has slowed due to resistance at $50,000, the feeling of “extreme” has given way to a more moderate “greedy” rating on the index.

In fact, the mood in August was basically stable, and the index has been between 70 and 80 for the past three weeks.

this Ideal bull market A combination of steady price increases and steady emotional growth-as history has shown, reaching the 95/100 standard top zone too quickly in fear and greed coincided with the BTC price sell-off.

Crypto Fear and Greed Index. Source: Alternative.me