The price of Bitcoin (BTC) starts a new week with a range of around $ 9,000 as it waits for signals from macro marketsWhat could be reserved for the next few days?
Cointelegraph takes a look at the key factors that could affect BTC’s price this week.
BTC compression is coming to an end
The stocks had an uneventful start to the week and the main stock futures are slightly lower during the daymaximum 0.6% at the time of printing.
Bitcoin also had a quiet weekend with negligible volatility and a narrow trading corridor that continues to characterize price developments.
On Monday, BTC / USD was hovering around $ 9,180, previously hitting local highs of $ 9,226, the highest level since July 15th.
As has become common in the past few weeks, The mood of the corona virus and the reactions of governments and central banks to the associated corrective measures determine the macro measures, and Bitcoin is still prone to mimicking movements.
With calm before the opening of Wall Street, The scope for maneuver seemed limited given the “compression” of BTC / USD in the past few weeks.
A cycle of higher minima and lower maxima, The current compression cycle showed little sign of a break this month. However, as Cointelegraph reported The status quo is ripe for change, and that should happen this week, analysts say.
“It feels like a small world championship. #bitcoin could explode on or around 22“Jason Williams, co-founder of Morgan Creek Digital cryptocurrency hedge fund, tweeted On Sunday.
CZ: Don’t take safe harbor status “too literally”.
Investors shouldn’t consider Bitcoin “too literal” as a safe haven in today’s marketsays the CEO of Crypto Exchange Binance.
Changpeng Zhao, known as “CZ” in cryptocurrency circles, warned and warned about Bloomberg on July 20 BTC / USD should not be considered a special relationship with stocks.
“I believe that People shouldn’t take the meaning of “safe haven assets” too literally … There are always several factors that affect the price of an asset“he said to the network.
“If you think of Bitcoin as a float and the Titanic next to it sinks, if a rope ties the float to the Titanic, the float sinks with the Titanic. Although the float has flotation properties, it is unable to sustain this type of load. “
As Cointelegraph reported Quantum analysis has shown that Bitcoin correlates 95% with the SP 500.
CZ added, however Fiat inflation and its impact on investor holdings would improve Bitcoin’s safe haven profile over time.
Analyst: Gold can keep pumping
When it came to safe havens, the focus at the weekend was on gold. As a result of the corona virus, the precious metal has so far increased by 19% this year.
Even in the eyes of the media, Investors have an appetite for a Fiat exit that has been marred by central bank money pressure and lower interest rates.
According to Michael Widmer, commodity strategist at Bank of America Securities, Gold could have more room for growth than its current nine-year highs.
“”We need a little more visibility before the gold price peaks.“he said to CNBC.
However, data from the Skew chain monitoring system confirm this Bitcoin has so far significantly outperformed gold this year: 27.7% vs. 18.4%.
Bitcoin one-year chart versus gold. Source: Skew
Crypto futures show signs of life
Binance also saw significant growth in its Altcoin-focused futures productsas opposed to a decline in activity for Bitcoin.
In July alone, the volume of the stock market’s perpetual futures rose 150% to $ 5.1 billionof $ 2 billion, while the daily volume of altcoins futures reached $ 2 billion.
Thishe says in an attached blog post, highlights the attention of investors who focus on altcoin markets after boring bitcoin price promotions.
“”Bitcoin’s unusual price stagnation has shifted investors’ appetite for altcoins as prices hit new all-time highs“says the blog post.
“This explosion in altcoin demand has ushered in an altcoin season, as evidenced by the declining dominance of Bitcoin’s market cap.”
Daily volume chart of aggregated Bitcoin futures for one month. Source: Skew
Bitcoin fundamentals remain at the highest level ever
However, It is open to debate in which direction the bitcoin price rise could go. The analysis suggests a decrease of 11%, which corresponds to support in the context of the currently descending price channel.
At the same time, The fundamentals of the Bitcoin network and the mood of the miners are still remarkably strong. A 6.3% increase is expected in seven days, the highest level in history. The average hash rate also stays close to its all-time highs.
2-month average Bitcoin difficulty. Source: Blockchain
The difficulty is related to the effort required to solve the equations in the Bitcoin blockchain, while the hash rate is a rough measure of the computing power devoted to mining.
While both metrics only give an impression of the state of the network, Steady upward growth has previously impacted price developments.
The main proponent of the theory that “price follows the hash rate” is Max Keizer, the RT moderator who remains very optimistic about BTC / USD and predicts a price target of $ 500,000.