Bitcoin (BTC) starts the week paying $ 11,000 if range behavior persists, but the risk of a future gap remains.
Cointelegraph examines five factors that could affect Bitcoin’s price movement in the coming week.
Trump’s tax files reveal the BTC price of $ 11,000
Sunday gave Bitcoin an unexpected boost after a week of poor price performance. This was thanks to an investigation into US President Donald Trump’s tax records, the results of which were published in the New York Times.
The details include just $ 750 in taxes Trump paid in the year he was elected in 2016, while there are no other ties with Russia – which was a major point of contention at the time.
However, the release could have an impact on Trump’s chances ahead of this year’s election and markets will be watching the new unrest with interest.
Trump himself has fought hard to keep his tax records secret.
During a press conference at the White House, he said, “It is completely false news.”
The BTC / USD pair rose towards $ 11,000 on Sunday but hit a resistance level around $ 10,950 to return to time pressures below $ 10,900.
This marks the upper limit of the weekly range for cryptocurrencies, where no breakout or breakdown has occurred outside of the range between $ 10,000 and $ 11,000.
Bitcoin over $ 10,000 is longer than ever
Although no progress has been made beyond $ 11,000, Bitcoin continues to prove the cops are right this month.
As many analysts noted on Sunday, BTC / USD spent more time trading above $ 10,000 than ever before – 64 days on Monday.
Anthony Pumplano, co-founder of Morgan Creek Digital, summed up the sentiment of the cryptocurrency skeptics
Part of the tweet reads, “Bitcoin has spent over $ 10,000 for 63 days in a row and is only showing bullish signals.”
“The market is proving your downtrend is wrong. It’s always time to give up and join the party.”
Others think five characters still have a chance to part ways. Should the decline be supported, the CME futures gap, which remains open at $ 9,600, has not been tested.
In Saturday’s analysis, Cointelegraph Markets analyst Michael Van de Pope highlighted the void as a possible outcome of a bearish scenario for Bitcoin, with current levels continuing to open up the possibility of a rise.
Bitcoin basics don’t matter
The fundamentals of the Bitcoin network still look stronger than ever and still underscore the miner’s commitment.
Both weekly average retail price and difficulty remained bullish early in the week, with a significant 5.1% increase in the next cabinet reshuffle in five days.
With the previous adjustment, health increased by 11.4%, which underscores competition among miners for block bonuses. At the time, quantitative analyst PlanB described the move as “like clockwork,” four months after cutting Bitcoin’s recent support in half and matching behavior after the previous half.
The average hash rate, an inaccurate but generally useful indicator of helping the network, has now risen to its all-time high after hitting 143 hours per second (EH / s) in early September.
Bitcoin average retail price over 7 days
Bitcoin average retail price over 7 days. Source: Blockchain
DXY Power could not destroy Bitcoin
The Trump story had little impact on the primary measure of the US dollar as Bitcoin has shown a strong inverse correlation in recent months.
The US dollar index (DXY) has remained stable over tax history after rising for a week.
DXY places the US dollar against a basket of trading partner currencies and has improved its position significantly since mid-September. As Cointelegraph reported, this contributed greatly to the downward pressure on Bitcoin / USD. Still, Bitcoin has held up better than expected over the past week, suggesting that the relationship with the index may relax.
Last week statistician Willie Wu predicted that Bitcoin would “soon” be abandoned its connections to traditional markets, including other safe havens like gold.
In the meantime, however, any decisive movement in DXY is likely to affect the price development of Bitcoin in the short term.