Bitcoin (BTC) price enters the new week with only a short distance left to reach an all-time high. After overcoming the weekend in a fairly positive way, the price remained higher without experiencing a deeper price drop than last week. ,000 worked as net support. What’s next for Bitcoin now? EarnForex discussed five factors that could shape the Bitcoin price action in the coming days. Stocks volatility a knock-on effect for BTC An unusual opening is likely for US stocks on Monday as the level of fear in the market had increased over the impact of Friday’s billion block trades. Major players Goldman Sachs and Morgan Stanley gave traders a headache with the unexpected appearance of the orders targeting especially tech stocks. This will end when the market opens on Wall Street
Topics:
Mark Stevenson considers the following as important: Bitcoin, Forecasts
This could be interesting, too:
Ibrahim Anifowoshe writes Bitcoin Edging Toward K: Why Is the Coin Teasing?
Andrew Moran writes Commodities Week in Review: March 29 to April 2
Mark Stevenson writes JPMorgan Sees Institutional Opportunity Due to Falling Bitcoin Volatility
Ibrahim Anifowoshe writes Bitcoin Hits K, Edges Closer to Breakout
Bitcoin (BTC) price enters the new week with only a short distance left to reach an
After overcoming the weekend in a fairly positive way, the price remained higher without experiencing a deeper price drop than last week. $50,000 worked as net support. What’s next for Bitcoin now?
EarnForex discussed five factors that could shape the Bitcoin price action in the coming days.
Stocks volatility a knock-on effect for BTC
An unusual opening is likely for US stocks on Monday as the level of fear in the market had increased over the impact of Friday’s $20 billion block trades.
Major players Goldman Sachs and Morgan Stanley gave traders a headache with the unexpected appearance of the orders targeting especially tech stocks. This will end when the market opens on Wall Street on Monday.
In a statement to Bloomberg, portfolio manager Sharif Farha said, “traders around the world know the story and will be glued to the screen.” The volatility in stocks means a
“Markets could start trading in a friendly manner at the start of the week,” said Andreas Lipkow, a strategist at the German bank Comdirect.
Although there are significant
profit-taking and unusual block trading activities, these asymmetrical movements in the market can still be used positively.
Other macro factors include falling oil prices are taking place, but it still does not create pressure for Bitcoin investors as stocks. Meanwhile, the Opec + meeting to be held this week, as well as the solution to the crisis in the Suez Canal, could pull prices down as expectations for an increase in supply rise.
Bitcoin price consolidates at $56,000
The Bitcoin spot markets started with consolidation on Monday. BTC traders felt relieved on Saturday and Sunday after the BTC/USD pair dropped to lows at $50,000.
When the deeper declines were averted, the liquidation, which was feared to occur at $46,000, did not happen and BTC recovered towards the resistance at $56,000. However, at the time of writing this article, Bitcoin is trading above that resistance as the bulls press towards the
Bitcoin 1-hour chart (Bitfinex). Source: Tradingview
Crypto analyst Michaël van de Poppe said in a review on Sunday:
#Bitcoin scenario is playing out so far, in which the crucial resistance fails to break in one-go.
Either way, that's not bad.
If $54K fails to hold support, I'm assuming we'll see this scenario play out.
Still consolidation. pic.twitter.com/vdDKnLehVL
— Michaël van de Poppe (@CryptoMichNL) March 28, 2021
Some analysts and traders have adopted the
Bitcoin’s April performance dependent on consumer spending
According to
In its recent study, Glassnode highlighted the unusual disparity between US consumer spending and disposable income stemming from the COVID-19 lockdowns.
Although they are normally very close, the start of the lockdown saw the two measures of the purchasing power of retail investors: there was more money due to stimulus checks and other factors, but there was nowhere to spend it.
Now, as the lockdowns are being gradually lifted,
Commenting on where the stimulus checks will be spent,
Many households now have an extra buffer of income to spend, due to new stimulus checks and decreased spending during lockdowns.
Will they invest this into markets or pay off debt?#Bitcoin's April performance will depend on it. https://t.co/UJdLxnfqva pic.twitter.com/xXbEICPjqM
— Jan & Yann (@Negentropic_) March 28, 2021
The blog post that accompanies this view argues that the recent $1,400 incentives are not yet included in the economy.
Disposable income and consumer spending in the USA. Source: Twitter
“The last stimulus package was much larger than it was in January, but this has had little impact on global markets,” Glassnode said.
The extent to which the checks have reached households so far is difficult to measure. More importantly, considering that for a while this was the last financial incentive, it is quite difficult to measure how much the individual investor will willingly spend or save money this time.
Meanwhile, unverified reports suggest that the next incentive checks may arrive earlier than expected.
The relative strength index says Bitcoin will gain more
Bitcoin technical indicators point to strong bullishness over long time frames. Traditionally, higher prices are seen when the relative strength index (RSI) reaches its peak.
Quant analyst PlanB, the developer of the stock to flow Bitcoin price model, revealed how the relative strength index fluctuates according to Bitcoin’s halving cycles.
He said that normally, the most efficient period in terms of price is the year after the halving. He stated that 2021 will not be different from 2013 or 2017.
#bitcoin monthly RSI is not even 95. In 2011, 2013 and 2017 bull markets we had at least 3 months above 95. Still early. pic.twitter.com/1RfnnelACt
— PlanB (@100trillionUSD) March 27, 2021
Meanwhile, the stock to flow model predicts an average price of $100,000 to $288,000 for the BTC/USD pair in the current
Bitcoin RSI chart. Source: PlanB
Fear and ambition index is calm
According to the Crypto Fear and Ambition Index, which is a classic metric of the market, the price increase at the weekend has a significant effect on selling pressure in terms of investor sentiment.
The Crypto Fear and Ambition Index, which gives a result between 0 and 100, shows how the market feels about Bitcoin price movements and determines whether the last activity was a jump from lows or a sell from high.
During the move towards an
Crypto Fear and Ambition Index. Source: Alternative.me
At the time of writing this article, the index, with 72 points, pointed to a sense of “ambition” among investors. However, it says that there is still some time before entering the sales area and that the “excessive greed” area has not yet been reached.
If you have any questions and comments on Bitcoin today, use the form below to reply.
© MarkStevenson for Commodity News, 2021. |
Permalink |
No comment |
Published under: Bitcoin, Forecasts