Bitcoin

5 things that will affect Bitcoin price action this week

Bitcoin (BTC) starts the week pushing up to $ 11,000 while rocking behavior continues, but the futures gap threat remains.

Cointelegraph takes a look at the five factors that could affect Bitcoin’s price action in the coming week.

Trump Tax Files are seeing a $ 11,000 rise in BTC prices

Sunday gave Bitcoin an unexpected boost after a week of weak price development. This was thanks to an investigation into the tax records of the President of the United States, Donald Trump, the results of which were published by the New York Times.

5 things that will affect Bitcoin price action this week
5 things that will affect Bitcoin price action this week

The details include just $ 750 in taxes Trump paid in his 2016 election yearwith no further links with Russia, a major source of controversy at the time.

Still, the item could have an impact on Trump’s chances ahead of this year’s election, and markets will be on the lookout for further turmoil.

Have Trump had fought long and hard to keep his tax records secret.

“It is completely wrong news; made up, wrong”He responded during a press conference at the White House.

However, BTC / USD rose to $ 11,000 on Sunday found resistance around $ 10,950 to return to current levels just below $ 10,900.

This marks the high end of the cryptocurrency’s weekly range.who failed to break out of the $ 10,000-11,000 zone.

BTC / USD 7-day chart

BTC / USD 7-day chart. Source: Coin360

Bitcoin has been over $ 10,000 longer than ever

Though they didn’t get past $ 11,000, Bitcoin continues to agree with the bulls this month.

As several analysts suggested on Sunday, BTC / USD has spent more time trading over $ 10,000 than ever before, 64 days on Monday.

Anthony Pompliano, the co-founder of Morgan Creek Digital, summed up sentiment about cryptocurrency skeptics.

“”Bitcoin has hit a record over $ 10,000 for 63 days in a row and is only showing signs of rising“says part of a tweet.

“The market shows that the bears are wrong. There is always time to surrender and join the party. “

Others believe that five characters still have a chance to disintegrate. Should the level of support decrease, the CME Group’s remaining futures gap will remain in the USD 9,600 zone.

In an analysis on Saturday, the Cointelegraph Markets analyst said Michaël van de Poppe highlighted the gap as a likely result of a bearish scenario for Bitcoinwith crucial current levels to open up the possibility of upward momentum.

Bitcoin basics don’t matter

Even stronger than ever The essential foundations of the Bitcoin network continue to underscore the miners’ commitment.

Both the weekly average hash rate and difficulty remained high at the start of the weekwith the difficulty of achieving a 5.1% increase in the next hiring in five days.

The previous adjustment saw a significant increase of 11.4%, underscoring the competition among miners for block rewards.. At this point, however, the quantum analyst was PlanB described the “like clockwork” movement that occurred four months after the Bitcoin halving and in line with behavior following the previous halves.

The average hash rate, an inaccurate but widely useful indicator of network support, tended to rise to an all-time high after 143 exahashes per second (EH / s). Beginning of September.

Bitcoin 7-day average hash rate 1-month chart

Graph of the average Bitcoin hash rate in a month. Source: Blockchain

The DXY strength cannot override BTC

Trump’s story had little impact on any major metric for the US dollar, with which Bitcoin has shown a strong inverse correlation over the past few months.

The US dollar currency index (DXY) remained stable when the tax story hitI climbed for a week.

The DXY is facing the USD with a basket of trading partner currencies and has improved its position significantly since mid-September. As Cointelegraph reported, this contributed greatly to downward pressure on BTC / USD. Despite this, Bitcoin has held up better than expected for the past week, suggesting that the ratio to the index may be declining..

US. Dollar currency index 1 month chart

1 month US dollar currency index chart. Source: TradingView

Last week the statistician Willy Woo predicted that Bitcoin would “soon” give up its links to traditional markets, including other safe havens like gold..

But now Every crucial step in DXY still has the potential to affect short-term Bitcoin price developments.

KuCoin hack funds worth $ 150 million are on the move

Bitcoin markets could spend some time grappling with the aftermath of the major hack of the South Korean exchange KuCoinwhich is valued as the fourth largest in history.

For a total of $ 150 million, some of the funds stolen from the exchange were then forwarded to Uniswap, a popular automated market maker (AMM) that traded DeFi tokens and other cryptocurrencies.

According to the monitoring resource Whale alert, Millions of dollars in various tokens have been left by the identified sources of money that have been stolen from Uniswap in the past two days.

Bitcoin was not directly affected by the hack, and BTC / USD seemed unaffected by the eventsThis is in stark contrast to previous years, when hacks often resulted in high price volatility.

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