Bitcoin (BTC) starts a new week with its first attempt to earn $ 50,000 in one month – what’s next?
After an encouraging weekend, BTC / USD is facing an increasingly optimistic climate and many expectations from analysts who demand a game changer in October.
The fourth quarter should be different from anything we’ve seen so far in the current Bitcoin rally, they said, with more than six months left to prove it by recent estimates.
With “Uptober” set for the first full week, Cointelegraph is looking at the following factors that may move the market over the coming days.
The markets are preparing for a “risky journey” in October.
The September shares may not have changed, but the first days of the new month have already shown how little good news can lead to Bitcoin surpassing the macro package.
While the S&P 500 fell 5% in September, the BTC / USD closed about $ 4,000 lower than in August.
Since October 1, however, the couple’s fate has set a completely different tone, and contrary to expectations that the stock will rise at the expense of the US dollar, the positive wind for Bitcoin may continue.
“In the fourth quarter of 2021, returns are likely to be above average,” CNBC said this weekend to Sam Stovall, investment analyst at CFRA Research.
“However, investors must stay close during the typically turbulent journey in October, when volatility was 36% higher than the average for the other 11 months.”
Sentiment last week was driven by a vote on US infrastructure legislation, which will now be postponed by 31 October.
The US dollar is currently at its highest level in more than a year on the US Dollar Index (DXY). The conversion of the last few days – a bullish catalyst for Bitcoin – is in the traders’ view.
For the popular Twitter retailer Crypto Ed, the DXY correction can last for several months, not weeks.
One-day DXY candlesticks. Source: TradingView
$ 50,000, but not yet
After cutting $ 49,000 over the weekend, Bitcoin has clearly lined up to attack the extremely important $ 50,000 mark, but not quite yet.
Despite the bullish momentum, the recent eruption to the upside ended on Sunday in a sharp decline and a subsequent fall around $ 2000.
Commentators, however, dismissed this as a bearish signal, claiming that any decline in BTC’s price would be temporary.
Among them is Cointelegraph member Michael van de Poppe, who that day reiterated his latest theory of short-term consolidation followed by a new bullish breakout.
Meanwhile, Pentoshi compares the situation with activity in the fourth quarter of last year, when Bitcoin was to hit 20,000 dollars, not 64,500 dollars.
“I do not care about lower time frames. I really care about the general structure of the market, “he said in the accompanying comments on Twitter.
Low or no decline, BTC / USD also set a strong weekly close of $ 48,234, thus excluding the action from all the previous two weeks.
Trader and analyst at Rekt Capital also pointed out that the Pi 111 moving average acts as support, which led to the latest rally.
New hash frequency
You may not know for sure, but according to some estimates, Bitcoin’s hashrate has already reached a peak ever.
Less than five months after China began a massive exodus of miners and hardware due to tough regulations, data sources show that the underlying metrics have completely offset the unrest.
Not only that, but the hash rate in recent days has reached 200 Exahs per second (EH / s) – 32 EH / s higher than the previous peak.
Measuring hashrate is difficult – it is impossible to be sure of the exact mining power allocated to Bitcoin, so any picture can only be a guess.
While different sources vary widely – CoinWarz recorded 201 EH / s on October 2, while MiningPoolStats currently shows 138 EH / s – the general trend is not negotiable.
The basis for the Bitcoin network is considered “only higher”, which reflects the miners’ long-term belief in profitability.
Earlier this year, China expelled almost 90% of the country’s bitcoin miners. Anthony Pompliano, co-founder of Morgan Creek Digital, commented on the data.
“After only a few months, we are almost back to the highest of all time. Financial incentives lead to further decentralization of the network. ”