Bitcoin (BTC) is starting a new week in all very familiar areas with steady rallies that cannot be reached.
After a positive weekend, the largest cryptocurrency avoided a deeper price drop than last week, and $ 50,000 remained stuck in support. What now?
The Cointelegraph examines five factors that could influence Bitcoin’s price movement over the next few days.
Promotions for key moments
Monday will be a very interesting opening for US stocks as concerns mount over the impact of the $ 20 billion blockchain on Friday.
The sudden appearance of orders from major players Goldman Sachs and Morgan Stanley, targeting mainly technical stocks, has caused problems for traders. This will happen now when the market opens on Wall Street on Monday.
“Merchants everywhere know this story and want to keep it in their hands,” portfolio manager Sherif Farha told Bloomberg.
Stock fluctuations mean the domino effect for Bitcoin, but ultimately it depends on movements that are still unknown at the time of writing.
“Markets can start trading in a friendly atmosphere early in the week,” added Andreas Lipkov, strategic analyst at German bank Comdirect.
“While there are some big gains and unusual closing activity at the moment, this symmetry in the market can still be handled quite well.”
Other macro factors include lower oil prices, but this is still not as suitable for BTC hawks as it is for stocks. An OPEC + meeting later this week, along with a possible solution to the Suez Canal crisis, drove prices down in anticipation of an oversupply.
BTC price ‘still holding’ at $ 56,000.
As for the bitcoin spot markets, at least as early as Monday is the story of consolidation.
Saturday and Sunday brought some welcome relief to traders who saw the Bitcoin / USD drop to a low, dropping at some point to as low as $ 50,000.
However, deep lows were avoided, and the $ 46,000 liquidity was left untouched in favor of a return to known resistance that started at around $ 56,000.
At the time of writing, this is exactly where Bitcoin has been, and is still unable to handle what has become a vast sea of sellers as of today $ 61,700 full-time.
The Bitcoin scenario continues to this day, with critical resistance not immediately broken. Michael Van de Pope, an analyst at Cointelegraph Markets said Sunday, however, that it’s not bad.
If there was no support for $ 54,000, I think we’d see this scenario. Continuation of monotheism. ”
1 hour light chart BTC / USD (Bitstamp). Source: Tradingview
Wait-and-see was the mood among analysts who tracked the recording. According to them, the consequences of the supply shock of depleting foreign exchange reserves and a lack of sales to powerful shareholders have yet to emerge.
April’s gains are “dependent” on consumption consumption.
According to Analyst Service Glassnode, the price dynamics in April will “depend” on retail investors and the institutional amount.
In its most recent study published last week, Glassnode highlighted the unusual difference between consumer spending in the United States and disposable income generated by coronavirus disruptions.
While this was closely related, the outbreak of closures led to two measures of purchasing power for retail investors – more money, thanks to incentives, among other factors, but nowhere to be used.
Now that resumption of activity is gradually starting to spread across several states, the balance should improve as restrained consumer demand becomes a big problem.
“Many families now have additional income reserves thanks to new incentive tests and spending cuts during lockdowns,” founding partner Jean Allemann Jean Abel tweeted.
Will they invest in the markets or pay off debts? This will affect Bitcoin’s performance in April. ”
A piece of the dependence of disposable income in the United States on consumption. Source: Twitter
An accompanying blog post claims the latest $ 1,400 stimulus has yet to spread to the economy.
“The recent stimulus package was much bigger than it was in January, but global markets have not yet felt its impact on global markets,” Glasnud said.
“It is difficult to gauge how much checks reach households today, and more importantly, how willing retailers will spend or save money this time, given that this could be the last economic stimulus for a while.”