Bitcoin (BTC) started the new week on a strong bullish note as stocks fell and BTC managed to close the week above $ 50,000.

After a mixed performance last week, with several tests worth $ 46,000, there is support for buyers and BTC / USD is within 15% of all rallies.

The Cointelegraph looks at what traders can expect in the next few days with five factors that could influence Bitcoin’s price movement.

Stocks are down sharply as the US dollar rallied
Last year, the situation changed the miracle of the stock exchange, when indicators fell to the right and left amid warnings that the change in the exchange rate is far from complete.

Amid heavy losses in technology stocks, including cryptocurrency industry favorites Tesla and MicroStrategy, Asian stocks fell more than 1% on Monday after the opening.

Despite last week’s strong end, the consequences for the US were still ahead of Wall Street’s comeback. According to analysts at Morgan Stanley, the Nasdaq 100 may be touching the 200-day moving average, which is about 800 points below the current level of 12642.

“It’s going to be a lot of volatility in the market,” Kim Stafford, chief investment officer at Pacific Investment Management Asia Pacific, told Bloomberg.

“We think confidence is growing, especially with the advent of vaccines, so we will see growth worldwide. There are many reasons for confidence in the market, but a lot of them matter as well.”
Given the gloomy short-term outlook for exchange traders, the US dollar is consolidating its current strong performance.

In late February, the US dollar index (DXY) reached 92.19 over the weekend and remained above 92 on Monday.

Traditionally a problematic phenomenon of bitcoin price spikes, recent changes in the index have been less apparent than last year, with BTC / USD greatly reducing sentiment, creating an increasingly asymmetric path.

Meanwhile, oil prices have resumed their rise, adding to the news that Saudi Arabia’s infrastructure is under attack. However, this did not affect production.

The stimulus checks the incoming mail
The main factor behind the dollar’s strength, albeit contrary to common sense, was the news that lawmakers would increase supplies to $ 1.9 trillion in the wake of the recent coronavirus stimulus package.

On Sunday, the Senate approved a temporary cash injection of President Joe Biden, piling up new debt on the country’s mountains, but would provide eligible Americans with $ 1,400 in payments.

With Bitcoin’s public profile increasing this year compared to the last big stimulus boost of $ 1,200 in March 2020, expectations that at least some of the money will go to Bitcoin are high.

The numbers that are now repeated on the Internet speak for themselves. According to online monitoring resource Bitcoin Stimulus, the total value of the two previous checks – $ 1,200 and $ 600 – as of March 4, would have increased over $ 10,250 if each recipient had purchased the bitcoin instantly.

In other words, the first incentive bought $ 1,200 0.18 Bitcoin at the time of receipt, and the check $ 600 bought 0.02 Bitcoin. This time, even though the dollar amount was greater, it was only 0.028 BTC at the time of writing.

In the long term, dollar weakness is falling heavily on investors’ heads, given the oversupply and other impacts associated with the controversial economic response to the virus.

Despite claiming not to be a “Bitcoin extreme,” veteran trader Peter Brandt said Bitcoin would benefit from existing policies in the long term.

On Sunday, he warned that “the reduction in the purchasing power of the US dollar … has just begun.”

“This is why Bitcoin Bitcoin, real estate, US stocks and commodities will continue to rise in terms of US paper currencies.”
Brandt also revealed that his second largest investment center after real estate is his bitcoin bonus.

Bitcoin is the second largest weekly in terms of volume
In Bitcoin, the bulls were chased by the weekend and gone as they raised the probability of a new BTC / USD rally by more than $ 50,000.

In line with the stimulus announcement, it reached local highs of $ 51,177 on Bitstamp. Meanwhile, positive investment news from China widened the supply shortage listing, and this focused on institutional buying, reducing the already dwindling amount of BTC available for purchase in the market.

Although it wasn’t able to hold out until Monday, the important psychological level was able to survive the weekly close, making Bitcoin the second-largest weekly close ever.

Source: CoinTelegraph

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