Bitcoin (BTC) is heading for a bullish start to another weeks trading after shrugging off lower levels to hit $11,700.
Cointelegraph takes a look at five things that could shape price performance in the coming days after BTC/USD saw little impact from both the Fed and futures settlements last week.
In a classic continuation of the eerie post-coronavirus setup, stock markets are headed even higher on Monday.
Despite the difficulties faced by many after months of sporadic coronavirus lockdowns and associated economic hardship, large-cap stocks around the world are showing no signs of bearishness.
The Dow Jones made brisk progress before moving slightly lower towards the end of trading, up 0.5% on the day. In the United States, S&P 500 futures were also up modestly at 0.3% as of press time.
The progress comes as geopolitical tensions also fester, with the U.S. and China sparring over issues such as Washingtons planned enforced sale of social media platform TikTok.
Speaking to Bloomberg, however, one analyst sounded more like a Bitcoin bull when describing the outlook for equities.
I cant see whats going to change peoples perspective on why we should stop buying, Randy Frederick, vice president of trading and derivatives at U.S. multinational financial services giant Charles Schwab told the publication on Saturday.
If we continue to buy and we have a few more pullbacks, which I think is likely, people will just continue to jump in and buy those dips.
Bitcoin Vs. S&P 500 3-month chart. Source: Skew
After most macro assets saw losses on the back of the Fed speech on Thursday, Bitcoin has nonetheless managed a conspicuous turnaround. Since the speech, BTC/USD is up by over 4.2%.
The same is true for safe-haven gold, which also recovered over the weekend. Curiously, the U.S. dollar currency index, or DXY, which plumbed two-year lows after Thursday, has also bounced back analysts continue to eye inverse correlation between the two assets.
At publication time, Bitcoin circled $11,600, having reached $11,720 in an early morning rally. Despite the broad push forward post-Fed, the consensus among Bitcoin commentators remains that long-term policy will drive interest in hedges against the dollar.
Powells speech is as much about employment as it is inflation. The Fed wants full and healthy employment and are expanding the ways they look at it, Galaxy Digital CEO Mike Novogratz tweeted.
Inflation will be tolerated to get to these goals. Bullish for gold. Bullish for BTC.
Should DXY action continue to continue its inverse relationship with Bitcoin, the largest cryptocurrency may get a further boost sooner rather than later.
The dollar has far more room to fall than almost anyone thinks, gold bug Peter Schiff summarized, pointing to another Bloomberg piece in which investment company Pimco warned that the dollars fall was just getting started.
U.S. dollar currency index 1-month chart. Source: TradingView
Back within Bitcoin and the return of a CME Group Bitcoin futures gap greets traders on Monday.
Modest in size, the void between the end of last weeks futures trading and the start of this weeks lies between $11,645 and $11,735.
That will cause little interest, however, as a more significant interplay with a lower gap remains more of a topic of interest. Located at around $9,700, bets remain that that price will form a short-term price target for BTC/USD.
As Cointelegraph reported, futures gaps have historically functioned as reliable indicators of market direction, but the time taken to fill them can vary significantly.
CME Bitcoin futures chart showing a gap at $9,700. Source: TradingView
Bitcoin hash rate is staging a fresh comeback after a slight correction this month data shows seven-day average values back over 125 exahashes per second (EH/s).
The Hash rate represents the computing power dedicated to validating the Bitcoin blockchain by miners. The metric is impossible to measure exactly, but hash rate numbers allow for a rough idea of miner sentiment.
125 EH/s is not far off all-time highs for hash rate seen earlier in August, and coupled with all-time highs for network difficulty, it is clear that miners are bullish.
Bitcoin 7-day average hash rate 1-month chart. Source: Blockchain
PlanB, the creator of Bitcoins stock-to-flow price prediction models, agreed last week as difficulty reached its highest-ever levels of 17.6 trillion.
Responding, Saifedean Ammous, the author of The Bitcoin Standard, argued that even freak events that wipe out mining hardware would not cause a headache for market participants more broadly.
In my mind, the destruction of miners would make mining more profitable for other miners, he wrote in Twitter comments.
It would only affect the price to the extent it forces miners to sell more than they otherwise would, which I don't imagine to be a very strong effect.
As Bitcoin heads closer to $12,000, investor sentiment may yet see a return to the extreme greed, which itself warns a sell-off is incoming.
The Crypto Fear & Greed Index, which challenged its highest reading on record this month, is still lingering in the upper quadrant of its scale 75/100 on Monday.
Crypto Fear & Greed Index 3-month chart. Source: Alternative.me
When BTC/USD hit $12,500, readings of 84/100 appeared, which according to the Indexs creators means a correction is likely.
The Index has not been out of the greed zone since the end of July.
See the rest here:
USD has more room to fall 5 things to watch in Bitcoin this week - Cointelegraph
- Google removes malware Android apps used to secretly mine bitcoin - April 26th, 2014 [April 26th, 2014]
- Bitcoin exchange MtGox liquidated - April 26th, 2014 [April 26th, 2014]
- Bitcoin Wannabe Litecoin Emerges as Low-Price Challenger - April 26th, 2014 [April 26th, 2014]
- The Worlds First Bitcoin Debit Card Is Almost Here - April 26th, 2014 [April 26th, 2014]
- How does Bitcoin work? - Bitcoin - Open source P2P money - April 26th, 2014 [April 26th, 2014]
- Bitcoin - Wikipedia, the free encyclopedia - April 26th, 2014 [April 26th, 2014]
- The Bitcoin Group #27 - China Bans Bitcoin Again - Politics - Dark Market - Bitcoin VC - Video - April 26th, 2014 [April 26th, 2014]
- Edan Yago - Free Market Bitcoin regulation and Honduras free trade zones.mp4 - Video - April 26th, 2014 [April 26th, 2014]
- Bitcoin vs. Political Power: The Cryptocurrency Revolution - Stefan Molyneux at TNW Conference - Video - April 26th, 2014 [April 26th, 2014]
- Video: Roundup of This Week's Bitcoin News 25th April 2014 - Video - April 26th, 2014 [April 26th, 2014]
- Bitcoin Fredagsbar med Torben Mark Pedersen - Video - April 26th, 2014 [April 26th, 2014]
- Bitcoin and the Internet of Money - Video - April 26th, 2014 [April 26th, 2014]
- Bitcoin for Dummies - Video - April 26th, 2014 [April 26th, 2014]
- Bitcoin runner-up Litecoin emerges as low-price challenger - April 27th, 2014 [April 27th, 2014]
- Bitcoin or Gold? Squawk Walk Taipei- Squawkonomics - Video - April 27th, 2014 [April 27th, 2014]
- Bitcoin Miner AntMiner S1 180 - 200 GH/s Nu in de Aanbieding! - Video - April 27th, 2014 [April 27th, 2014]
- New Bitcoin Documentary: Boom or Bust - Video - April 27th, 2014 [April 27th, 2014]
- Bitcoin May v0.9.1 GitHub Source Code Development Visualization - Video - April 27th, 2014 [April 27th, 2014]
- Atomic-Trade Bitcoin Exchange. AML, BSA, FinCEN compliant - Video - April 27th, 2014 [April 27th, 2014]
- China Bans Bitcoin Again -- Bitcoin the Movie -- Startup for Startups Raises 2,000 BTC - Video - April 27th, 2014 [April 27th, 2014]
- 4/24/14 - Xapo Debit Card, Russia's 1st Bitcoin Conference, Silk Road 2.0 - Video - April 27th, 2014 [April 27th, 2014]
- What is Bitcoin? - Video - April 27th, 2014 [April 27th, 2014]
- David Andolfatto, How Does Bitcoin Work? - Video - April 27th, 2014 [April 27th, 2014]
- Australian Bitcoin traders hit by crash - April 28th, 2014 [April 28th, 2014]
- Bitcoin traders hit by Mt.Gox crash - April 28th, 2014 [April 28th, 2014]
- Market Extra: Bitcoin venture capital money hasnt kept up with buzz - April 28th, 2014 [April 28th, 2014]
- Bitcoin price slips as China steps up regulation - April 28th, 2014 [April 28th, 2014]
- Bitcoin price slips on China regulation - April 28th, 2014 [April 28th, 2014]
- Win .33 Bitcoin ($150 or so, Depending on BTC value) - Meme game for May 1st - Take My Bitcoins - Video - April 28th, 2014 [April 28th, 2014]
- Ron Paul on Bitcoin - Video - April 28th, 2014 [April 28th, 2014]
- btc.sx Bitcoin derivatives platform George Samman clip - Video - April 28th, 2014 [April 28th, 2014]
- 'The Rise And Rise Of Bitcoin' Filmmaker: 'There Is No Answer Yet' - April 29th, 2014 [April 29th, 2014]
- Bitcoin the movie: It just had to happen - April 29th, 2014 [April 29th, 2014]
- Bitcoin Vies with New Cryptocurrencies as Coin of the Cyber Realm - April 29th, 2014 [April 29th, 2014]
- The Bitcoin Meetup - BitcoinMKE Hosts Jeffrey Tucker - Video - April 29th, 2014 [April 29th, 2014]
- MIT Bitcoin Expo 2014 - Video - April 29th, 2014 [April 29th, 2014]
- Bitcoin Expo 2014: Fireside Chat with Dr Gavin Wood - Video - April 29th, 2014 [April 29th, 2014]
- Rise Bitcoin Singapore - Video - April 29th, 2014 [April 29th, 2014]
- Preview: Bitcoin Authenticator - 2FA for wallets - Video - April 29th, 2014 [April 29th, 2014]
- The Bitcoin Group #27 (Live) - China Bans Bitcoin Again - Politics - Dark Market - Bitcoin VC - Video - April 29th, 2014 [April 29th, 2014]
- 4/25/14 - More China uncertainty, Missourian bitcoin warning, BadLepricon malware - Video - April 29th, 2014 [April 29th, 2014]
- Money & Tech at The Rise And Rise Of Bitcoin Afterparty - Video - April 29th, 2014 [April 29th, 2014]
- New Bitcoin student club at MIT will promote the virtual currency - April 30th, 2014 [April 30th, 2014]
- 4/29/14 - MIT Bitcoin Project, Mt Gox revival plan, Mastercard lobbyists & Team Rubicon - Video - April 30th, 2014 [April 30th, 2014]
- BitCoin Dentist GoCoin Fox News Interview - Video - April 30th, 2014 [April 30th, 2014]
- Bitcoin Foundation Election Hiccups -- Pathetic Ohio Bans Bitcoins -- Dogecon SF 2014 - Video - April 30th, 2014 [April 30th, 2014]
- Bitcoin Slips to $420 as BTC China Halts Transactions - Video - April 30th, 2014 [April 30th, 2014]
- MultiSig Plus BitCoin Multi Coin Wallet looks like HUGE INVESTMENT potential! - Video - April 30th, 2014 [April 30th, 2014]
- Bitcoin: what happens when the miners pack up their gear? - May 1st, 2014 [May 1st, 2014]
- Dark Wallet Is About to Make Bitcoin Money Laundering Easier Than Ever - May 1st, 2014 [May 1st, 2014]
- Bitcoin Talk Show #7 -- Skype BitcoinTalkShow to Call in Live! 🙂 - Video - May 1st, 2014 [May 1st, 2014]
- Basic Bitcoin Bitches - Video - May 1st, 2014 [May 1st, 2014]
- Gold standard vs Fiat vs Bitcoin - Truthloader - Video - May 1st, 2014 [May 1st, 2014]
- How to Defund the System: Bitcoin vs. the Central Banksters - Video - May 1st, 2014 [May 1st, 2014]
- Bitcoin, Anarchy and Freedom with Roger Ver - Video - May 1st, 2014 [May 1st, 2014]
- MIT Goes Bitcoin-Wild - May 1st, 2014 [May 1st, 2014]
- Bitcoin Weekly 2014 April 30: Bloomberg adds Bitcoin to their market index, MIT to produce campus-wide bitcoin ... - May 1st, 2014 [May 1st, 2014]
- 'Dark Wallet' wants to make Bitcoin even harder to trace - May 1st, 2014 [May 1st, 2014]
- Bitcoin made simple (video animation) - Video - May 1st, 2014 [May 1st, 2014]
- Jon Matonis: Bitcoin - The future of commerce? - Video - May 1st, 2014 [May 1st, 2014]
- $100 in Bitcoin Going to Every MIT Undergrad - Video - May 1st, 2014 [May 1st, 2014]
- The Rise of Digital Currency - Video - May 1st, 2014 [May 1st, 2014]
- Money Goes Virtual: The Bitcoin Bourse - Video - May 2nd, 2014 [May 2nd, 2014]
- Bitcoin Lights with LIFX - Video - May 2nd, 2014 [May 2nd, 2014]
- Bitcoin: How We Got Here and Where We Are Going - May 3rd, 2014 [May 3rd, 2014]
- 5/1/14 - Larry Summers warns critics, Paym system & Bitcoin Center NYC roundtable - Video - May 3rd, 2014 [May 3rd, 2014]
- On est Connect S2 #07 1/2 : BitCoin et Musique sur Internet - Video - May 3rd, 2014 [May 3rd, 2014]
- MIT Undergrads To Receive $100 Worth Of Bitcoin This Fall - Video - May 3rd, 2014 [May 3rd, 2014]
- Why it only took ME less than 2 minutes to believe in Bitcoin - Video - May 3rd, 2014 [May 3rd, 2014]
- Bitcoin Basics and Regulation Thoughts from NH Liberty Forum - Bruce Fenton - Video - May 3rd, 2014 [May 3rd, 2014]
- PRIMER CAJERO DE BITCOIN EN BIT CENTER DE TIJUANA - Video - May 3rd, 2014 [May 3rd, 2014]
- Yelp adds Bitcoin acceptance to business listings - Video - May 3rd, 2014 [May 3rd, 2014]
- Bitcoin A Terrorist Threat? Counterterrorism Program Names Virtual Currencies As Area Of Interest - May 4th, 2014 [May 4th, 2014]
- How Does Bitcoin Works - Video - May 4th, 2014 [May 4th, 2014]
- 10 Things You Didn't Know About BitCoin - Video - May 4th, 2014 [May 4th, 2014]
- BITCOIN The Future of Money - Video - May 4th, 2014 [May 4th, 2014]
- Bitcoin Miner Review - Video - May 4th, 2014 [May 4th, 2014]
- The Bitcoin Group #28 (Live) - Yelp Lists Bitcoin - MIT Bitcoin $100 - Dark Wallet - Ohio Bans BTC - Video - May 4th, 2014 [May 4th, 2014]
- Bitcoin: Gary North is Mentally Deranged And Bitcoin Will Change Everything - Video - May 4th, 2014 [May 4th, 2014]
- Who is the Bitcoin Warlord? - Video - May 4th, 2014 [May 4th, 2014]