Bitcoin (BTC) is feeling the pressure when new week trading begins – but what will lead to market sentiment in the coming days?
The Cointelegraph newsletter gives you five factors that affect Bitcoin price in the next week.
Stocks fell in the second wave of fear COVID-19
Stock futures take the battery until the watch opens. The potential culprit is the coronavirus again – a new set of infections in China has created fears of a new wave already starting.
Dow Jones futures lost 800 points or 3.2% during the day, while the S&P 500 and Nasdaq fell 3% and 2.3%, respectively.
Bitcoin managed to reduce the degree of the effect of the overall shifts on the price, but, as Cointegraf previously indicated on Monday, some exposure continued.
Additional losses likely to add to sales pressure on already fragile BTC / USD. Last week, the analyst sounded the alarm about a stock crash over the next three weeks.
Change the increase in inflows after falling prices using bitcoin
Bitcoin effect, which fell below $ 9,000 for the first time in two weeks, applies to exchanges.
According to the CryptoQuant Analytical Resource Series, big bourses joined on Monday.
“In recent hours, currency flows have been growing steadily, and $ BTC is declining 5%. The company said on Twitter, which uploads a graph that tracks this phenomenon.
Traders who move currencies to exchanges may indicate a desire to sell or a willingness to sell currencies in the event of further losses. Earlier, foreign exchange reserves reached their lowest level since the end of the Bitcoin falling market in December 2018.
15% difficulty in the course
As prices drop, Bitcoin’s basic coverage continues to increase dramatically.
According to the publishing time from BTC.com, the difficulty level will increase by 15% with the next adjustment in the day.
The sudden reversal will only be reflected by the previous two amendments, which were negative.
Just a week ago, the third amendment was classified as close to zero or even negative, sparking a rare negative event, and three consecutive events, the last of which also occurred in December 2018.
Complexity is the expression of the amount of effort required to solve the equations needed to verify transactions in bitcoin. This tool is the key to ensuring that Bitcoin “takes care of itself” effectively and does not become unstable or less “difficult” like money, due to changes in mining participation.
A small gap in Bitcoin futures
Like last week, BTC / USD avoided high volatility at the weekend – meaning that a large “gap” in future markets did not have a chance to emerge.
The so-called “gaps” emerge when Bitcoin futures close on Friday at a different rate, as they continue on the following Monday.
Bitcoin tends to fill these gaps quickly when opened – whether it’s $ 100 or closer to $ 1,000.
This time, however, there is little room for maneuver, which excludes the possibility of a flight to a certain price point in the short term. On Friday, CME Group futures closed at $ 9,465, and on Monday – at $ 9,370.
Quantitative analysis does not care
Although traders agree to the “fear” mode according to the popular Crypto Fear & Greed index, downsizing is not a big deal for analysts.
Even after BTC / USD is down by about $ 1000, it’s still on time exactly according to the price stream model.
Latest distributor update on social networks From June 11, PlanB Builder showed that Bitcoin behavior after last month’s downgrade was consistent with the previous two halves.
If historical trends continue to repeat, that growth should follow, with bitcoin currencies on the way to reaching higher-priced prices over the next half-life – the next four years.