Bitcoin (BTC) begins a new trading week in the known corridor worth less than $ 10,000 – will it remain there or is volatility already in place?
Cointelegraph Market’s weekly newsletter gives you five factors that affect the dynamics of bitcoin prices in the coming days.
Stocks recovers from coronavirus problems
The start of this week indicates a clear contrast to last Monday. Concerns about coronavirus with stock market volatility have almost disappeared.
The general conditions for stock futures are uncertain, but they are more stable than seven days ago.
However, Bitcoin managed to avoid sudden movements over the weekend and continued to fluctuate in the range of $ 9,200 to $ 9,500.
For several weeks, BTC / USD was borrowed at $ 9,500, and it proved difficult to overcome the said resistance.
In an earlier newsletter, Cointelegraph indicated that despite signs of Bitcoin’s “separation” from regular markets since March, there are still extensive connections. Studies have also shown that BTC / USD has historically been very closely linked to the S&P 500.
Bitcoin complexity and hash rate
Another alternative is presented in the form of the basics of the Bitcoin network.
Last week, miners were preparing for the most difficult environment in two and a half years. This time the conditions are calmer and the next nine-day adjustment is currently set at a modest 5.6%.
Similarly, the segmentation of the Bitcoin mining segment has stabilized in recent days, with an average of 105 EH / s being saved after seeing 111 EH / s after change.
This weakening happened after data showed that after the ban was halved in May, more fragmentation power was joined to the Bitcoin network than ever since its launch in the 2017 rally.
BTC Options Prepare for mass expiry
Friday is again a time of crisis for bitcoin derivatives. According to Cointelegraph, June 26, you will see the options end up at about $ 1 billion.
Such events usually affect the mood of bitcoins prices. This time, the mood looks optimistic: most of the options are conversation options focused on the $ 10,000 mark.
Meanwhile, the volume of the Bitcoin futures market in recent days has shown few signs of an upward trend, while open interest has also been stagnant.
Futures avoided a “break” over the weekend due to the volatility of bitcoin prices – if markets didn’t open like they closed last Friday, BTC / USD tends to rise or fall to “fill” the void.
Foreign exchange reserves are falling
The number of bitcoins on stock exchanges has returned to its decline after rising by half.
According to CryptoQuant, a provider of video surveillance systems, foreign exchange reserves have now returned to their lowest level in almost two years.
Traders who transfer money outside the stock exchanges indicate a desire to keep them short term and not prepare coins for sale in the event of volatility.
As of June 21, stock portfolios had BTC 2.35 million. On the contrary, on March 13, when the BTC / USD collapsed to $ 3600, the reserve reached a maximum of BTC 2.73 million.
No fear, no interest?
When it comes to traders, even their emotions seem to show signs of a downward trend – from a downtrend to a neutral or better.
According to the latest Crypto Fear & Greed index, traders are showing signs of a rebound following a wave of “fears” last week.
On a chart from 0 to 100, the indicator takes into account several factors to measure how traders are bullish or bearish.
Reading on Monday 38/100 is the highlight of the weekend. Six months ago, the most optimistic result of the index was 56, while 37 recorded the lowest level.
Meanwhile, data from Google Trends shows that public interest in bitcoins is now at its lowest level since the March crash. This phenomenon was already visible at the end of last month, and half of the spotlight disappeared.