Bitcoin (BTC) is about to start trading another week’s bullish start after ignoring the $ 11,700 lows.
Cointelegraph takes a look at five things that could affect price action in the coming days after Bitcoin / USD made little impact on both the Fed and futures settlements last week.
The stocks were placed in higher elevations
In a classic continuation of the creepy build-up after the corona virus, the stock markets move higher on Monday.
Despite the hardships many face after months of intermittent coronavirus shutdowns and the economic hardship that came with it, large-cap stocks around the world are showing no signs of a downward trend.
The Dow Jones Index made a rapid advance before declining slightly at the end of the trade, up 0.5% on the day. In the US, the S&P 500 futures rose slightly to 0.3% at the time of going to press.
Progress is coming as geopolitical tensions intensify. The USA and China are arguing over issues such as the planned forced sale of the social media platform TikTok by Washington.
Speaking to Bloomberg, however, one analyst sounded like a bitcoin bull when describing the stock’s outlook.
“I can’t see what will change people’s perception of why we stopped buying,” Randy Frederick, vice president of trade and derivatives at US multinational financial services giant Charles Schwab, told the newspaper Saturday.
“If we keep buying and have more dips, which I think is likely, people will keep jumping and buying those dips.”
The dollar index rebounded after another recession
With most of its assets showing losses due to the Fed’s speech on Thursday, Bitcoin nevertheless managed to turn the trend. Since the speech, BTC / USD has risen over 4.2%.
The same applies to Safe-Haven-Gold, which also recovered over the weekend. Oddly enough, the US dollar currency index (DXY), which fell to its lowest level in two years after Thursday, has also rebounded – analysts continue to examine the inverse correlation between the two assets.
At the time of publication, Bitcoin is priced around $ 11,600 after hitting $ 11,720 early this morning. Despite widespread push beyond the Fed, there remains a consensus among Bitcoin commentators that long-term policies will spark interest in hedging against the dollar.
“Powell’s speech is about both employment and inflation. The Fed wants full and healthy employment and is broadening its perspective, ”tweeted Mike Novogratz, CEO of Galaxy Digital.
Inflation is tolerated in order to achieve these goals. Bullish for gold. Bullish for Bitcoin. “”
If DXY action continues its inverse relationship with Bitcoin, the largest cryptocurrency may get a boost sooner rather than later.
“The dollar has a lot more room to fall than almost anyone thinks,” summed up Peter Schiff, a gold expert, referring to another Bloomberg article in which investment firm Pimco warned that the dollar was just beginning to decline.
The futures gap remains untested
Back in bitcoin and the return of the CME Group’s bitcoin futures gap, it welcomed traders on Monday.
The gap between the end of futures trading last week and the start of this week is between $ 11,645 and $ 11,735.
However, this won’t result in little interest as the more significant interaction with the slightest gap remains an interesting topic. At around USD 9,700, the bet remains that this rate is a short-term target price for BTC / USD.
As Cointelegraph reported, “gaps” have historically been used as reliable indicators of market direction, but the time it takes to “fill in” these gaps can vary widely.
The hash rate is at an all-time high
Bitcoin hash rate is making a new comeback after a slight correction this month. The data show average 7-day values over 125 Exha / s (EH / s).
The hash rate indicates the computing power that is intended for the validation of the Bitcoin blockchain by miners. It’s impossible to measure the scale accurately, but the hash rate numbers give a rough idea of a miner’s feelings.
125 EH / s, not far from the all-time high hash rate of early August, coupled with all-time highs in network trouble, miners are clearly optimistic.