Bitcoin (BTC) greets another week with a push to $12,000 and its highest weekly close since after it hit $20,000 will it return?<\/p>\n
Cointelegraph takes a look at five things that stand to impact BTC price performance in the coming five days.<\/p>\n
Bitcoin hitting $12,000 again early Monday was more than just a boon for traders in doing so, BTC\/USD sealed its highest close on weekly time frames since January 2018.<\/p>\n
This means that no single week of price action ended at such high levels since, including during the height of last years bull market.<\/p>\n
Having pleased analysts for several months in the short term, Bitcoin thus followed through on longer timeframes a crucial move to cement the upward trajectory.<\/p>\n
Now, investors seeking confirmation that the bull market will continue may well have received it versus daily and hourly developments, a multi-year high weekly close is significant.<\/p>\n
BTC\/USD was thus up 2.4% on the day, with weekly gains sitting at 7% and monthly returns at over 30%.<\/p>\n
Price-wise, $12,000 represents the highest that Bitcoin has reached since June 2019, three months after a Q2 bull market took the cryptocurrency from $4,000 to $13,800 a level which this cycle has yet to reach.<\/p>\n<\/p>\n
BTC\/USD 7-day price chart. Source: Coin360<\/p>\n
Bitcoins price surge comes the week after United States president Donald Trump added to existing geopolitical tensions by banning Chinese social media platform TikTok.<\/p>\n
The resulting escalation of ties with Beijing adds to existing weakness in the U.S. dollar and ongoing concerns over Coronavirus a perfect storm for a flight to safe haven assets.<\/p>\n
At the same time, Trump signed a series of executive orders on Coronavirus stimulus, something which now has a curious impact on markets which are already subject to heavy intervention from the Federal Reserve.<\/p>\n
This time around, however, the measures will have a smaller direct effect on the average American. A payroll tax delay, for example, does not go far enough in the eyes of critics.<\/p>\n
This fake tax cut would also be a big shock to workers who thought they were getting a tax cut when it was only a delay, Bloomberg quoted Democratic Senator Ron Wyden as saying in a statement.<\/p>\n
These workers would be hit with much bigger payments down the road.<\/p>\n
It is this delaying the inevitable financial cost to personal wealth, which lies at the heart of the pro-Bitcoin argument high-time-preference economic behavior ultimately costs much more in the long term than the immediate benefit to the target audience.<\/p>\n
Where Bitcoin might head in the short term is now less clear cut when considering its historical performance versus other macro assets.<\/p>\n
The period since March, which saw a cross-asset crash, was marked first by a correlation to stock markets, and then to safe havens and specifically gold.<\/p>\n
Gold hit its all-time highs in U.S. dollar terms weeks before Bitcoin began significantly gaining, and its run has continued until now.<\/p>\n
A slight correction took XAU\/USD to $2,030 from highs of near $2,075 should the trend continue, Bitcoin may likewise cool off from its upward momentum.<\/p>\n
Nonetheless, as Cointelegraph reported, incoming action from the Fed looks set to buoy the precious metal further in a wildly bullish policy shift to expanding inflation way beyond its current rate of 0.6%.<\/p>\n
Stocks were likewise looking less stable analysts were warning over fallout for developing markets thanks to Turkeys currency crisis, and China sanctioning U.S. officials over Hong Kong added to pressure.<\/p>\n
Bitcoin up as tensions rise in Asia. Capital flight out of Asia taking the Bitcoin express, RT host Max Keiser summarized, adding:<\/p>\n
You cant take it with you, unless its Bitcoin - then you can take IT ALL with you (Something near impossible with Gold).<\/p>\n
Another volatile weekend has opened up a classic feature for short-term Bitcoin price forecasting a gap in CME Bitcoin futures markets.<\/p>\n
The weekends volatility means that futures finished Friday at $11,680 and began again at $11,750. The resulting void provides a key price target, with Bitcoin historically filling such gaps within days or even hours.<\/p>\n
Last week saw just such a setup emerge, with volatility aiding the trend after weeks of flat price action removed gaps from the market altogether.<\/p>\n
Another gap lower down at $9,700 still remains from July.<\/p>\n<\/p>\n
CME Bitcoin futures chart showing recent latest gaps. Source: TradingView<\/p>\n
For quant analyst PlanB, creator of Bitcoins stock-to-flow price forecasting model, the bullish action of the past weeks is exactly to be expected.<\/p>\n
Earlier in August, PlanB noted that BTC\/USD was filling out the stock-to-flow chart according to historical precedent since Mays block subsidy halving, dots have confirmed that current behavior falls within the rules.<\/p>\n<\/p>\n
Bitcoin stock-to-flow chart as of August 10. Source: Digitalik<\/p>\n
On the topic of major players flipping bullish, meanwhile, he added last week that when bitcoin was $4k in 2019, lot of big accounts were bearish, predicting $1k.<\/p>\n
Behind the scenes, however, signs were that if $6,000 appeared, the mood would change to favor the bulls.<\/p>\n
That actually happened, we shot through $6k. Now many were bearish at $9k .. $13.5k will be interesting, PlanB wrote.<\/p>\n
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Bitcoin Price Seals Best Weekly Close in 2.5 Years: 5 Things to Know - Cointelegraph<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Bitcoin (BTC) greets another week with a push to $12,000 and its highest weekly close since after it hit $20,000 will it return? Cointelegraph takes a look at five things that stand to impact BTC price performance in the coming five days Continue reading