Bitcoin (BTC) is challenging well-known but significant collections at the start of the new week, climbing to $ 58,000 on Monday.
After a surprise meeting on Friday, the largest cryptocurrency has been slowly declining for most of the weekend. That was turned upside down on Sunday, but the BTC / USD pair is now back to fight resistance near $ 60,000.
Cointelegraph looks at what the coming days of bitcoin price movement can expect, as well as five factors that may help shape it.
Bitcoin ignores DXY profits
Since many major markets are closed for the May holidays, there are fewer signals from commodities and stocks than usual.
Asian stocks have tracked losses caused by a host of problems, including the ongoing COVID-19 disaster in India. In the US, S&P 500 futures are already recovering from Friday’s loss.
Unlike Bitcoin, the markets have not responded well to rumors that financial support measures due to the virus may be cut by some banks – this was an important component that secured the S&P’s record over the past year.
Concurrently with this move, there was a shift in the strength of the dollar, but the US dollar index (DXY) posted impressive gains after a month of decline.
US Dollar Index (DXY) Chart 1-day candlestick chart. Source: TradingView
As Cointelegraph states, DXY and Bitcoin tend to correlate in the opposite direction, but this turned out to be another notable exception last Friday. BTC / USD clearly rallied that day, as if it came out of nowhere, topping $ 58,300 before the reversal.
Inflation remains a major concern – senior US officials believe the trillions of dollars spent on viral stimulation will have little impact, while others disagree.
Immediate build moves to next step
Another day, another strong Bitcoin renaissance.
After just one week of recovery from falling to nearly $ 46,000, BTC’s price movement is now offering additional profits at the end of last week.
While the tone of the weekend was mostly low-key, Monday has seen the kind of “buying crisis” that his nemesis Warren Buffett has seen in traditional markets.
At the time of writing, BTC / USD has surpassed the $ 58,300 mark – a site that has posted an all-time high since February – and is currently continuing to climb closer to $ 59,000.
1-hour light chart BTC / USD (Bitstamp). Source: TradingView
A look at buy and sell orders from Binance’s main order book shows that resistance is still strong at $ 60,000 and above, and the bulls will need to tear down many sell order walls to overcome the current full-time 64,500. Dollar. Another major hurdle now is $ 68,000.
In terms of support, the picture is less strong – $ 52,000 – the first strong level among traders, followed by $ 50,000 and $ 48,000.
The advantage of buying and selling BTC / USD (Binance). Source: material indicators.
However, the desire to use Bitcoin could see a new bullish phase as stable currency balances are replenished on the stock exchanges. In exchange for the massive “printing” of these assets, this trend provides the prospect of significant consumer demand, which contributes to an increase in the spot price.
“Stable currencies are returning to stock markets.” Analyst Jan Westenfeld summarized what this means.
Friday’s gains were mainly driven by “real” buying among spot traders, while delivery deals actually declined.
Cat and mouse with Ethereum
Another theory focused on Bitcoin is that it is simply playing on the acquisition of the hot altcoin scene, led by Ether (ETH).
The performance exceeded all expectations. ETH / USD is now above $ 3,000 after rising 28% last week, up from 11% in Bitcoin.
This has predictably reduced Bitcoin’s dominance in market value, which is now 47.7% – the lowest level since July 2018.
The graph of the dominance of the market value of the cryptocurrency. Source: CoinMarketCap
“I wouldn’t be surprised if we see 3,500 ETH this week,” popular Twitter trader Crypto Chase predicted along with a further rally against Bitcoin.
“ETHUSD exit from its bullish consolidation phase + ETHBTC is still in place for a launch (currently 0.053, resistance 0.058).”
In the meantime, monitoring provider Glassnode has noticed that the network’s value is dropping in line with Ethereum’s NVT terms and conditions, and this is in line with volume-based price increases.
The company commented on the attached chart: “When the dollar price of ETH reaches over $ 3,000 to determine the new ATH, the NVT ratio drops to the lowest of these cycles.”