Bitcoin (BTC) returned with revenge this week as a fresh trading day began with a fresh $ 60,000 attack.
After the weekend, when the largest cryptocurrency escaped a correction, Monday looks optimistic, but what could affect price action in the short term?
The Cointelegraph offers five factors Bitcoin traders should be looking for as the market approaches all-time highs.
The arrows reflect the chaos of the Coronavirus
The macro is the tale of two poets linked to the Coronavirus this week.
As the UK is the most recent lockdown, sentiment has spiked among business leaders, indicating pockets of optimism in the West still plagued by coronavirus restrictions.
The picture is murky to the major players in the eurozone, France and Germany, where the picture is much less rosy, while the United States is also a patchwork of politics when it comes to the virus.
So stocks were largely unchanged at the start of the week, while elsewhere, the impending lockdown sparked sentiment in India, the main driver of Monday’s decline.
Deepak Jasani, head of retail research at HDFC Securities, told Bloomberg that Delhi’s controversial measures are “causing market tension, and no one is sure if the lockdown will help bring the situation under control.”
“The incentive to try to catch fish is currently limited to the merchants.”
Meanwhile, market columnist Holger Zschippitz described a “busy” week for stocks, posting new highs for Friday’s risk fund total, which increasingly includes bitcoin.
Hacking bitcoin cards
Finally, the current Bitcoin signal has been tied to the spot market.
On Monday, $ 60,000 was back after BTC / USD broke its last significant price level early on Saturday morning.
The largest weekly shutdown in Bitcoin history this weekend was around $ 60K.
BTC / USD weekly chart (Bitstamp). Source: Tradingview
At the time of writing, the BTC / USD pair is betting on $ 61,000 again, which is below $ 1,000 from its all-time high. Analysts expect Bitcoin to enter uncharted territory.
“Another hacking attempt,” Skew Analytics summarized.
A look at order book activity on the major Binance exchanges reveals that sellers lined up $ 60,500, $ 6,500, and $ 62,000 before orders started running out. As for the buyer, $ 59,000, 58,000 and $ 57,000 remain strong interest.
As a result, narrowing volatility when Bitcoin is among the big buyers and sellers is a classic signal of the final stages of price consolidation. In 50 days, Bitcoin was in such consolidation mode, reaching $ 58,300 for the first time in the last week of February.
For popular trader Twitter Crypto Ed, the final move comes as a surprise just like last week, as several bearish signals filled the bearish time frame scene. Sunday signaled an imminent downfall.
“It is surprising that the Palestinian Authority denies this idea this morning,” he commented.
Coinbase crashes into boom indicators on the chain
Cointelegraph has frequently reported the strength of Bitcoin’s network indicators this year, and still requires the bullish market to continue through 2021.
Despite the consolidation in recent weeks, nothing has changed for the better, indicating that Bitcoin is not yet close to the peak of a bullish cycle, as it was in December 2017.
So there is no reason to drop the Byzantine General Twitter account, which provided a comprehensive overview of the data for the Weekend Index, to $ 60,000.
“Summary: – A little distraction – Constant strong bidding – Institutional flow – As long as there is no retail euphoria – Regular adoption becomes a real thing – Coinbase’s IPO can be a catalyst for volatility,” he concluded.
Many of those points relate to material already reviewed by Cointelegraph, while Coinbase’s upcoming live listing on the Nasdaq (Wednesday) could be a rare counterpoint this week.
In particular, on the day of listing, it is common to see sell-offs of listed companies and therefore temporary volatility may occur on Wednesday.
The Byzantine general added, “Google’s search for Coinbase shows that the standards have not yet been reached.”
“It appears that only krypton botanists know about this, and even among us there is a disagreement about what this incident entails.”