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5 things to consider with Bitcoin this week

June 8, 2020

Bitcoin (BTC) prices started a new week below $ 500 from $ 10,000, but the sudden volatility remains. What should I pay attention to in the coming days?

Cointelegraph presents a weekly summary of the Key factors that will affect BTC / USD price movement this week.

The stocks are rising, but the suspicion remains

The macro markets appear to be ready to continue the upward trend despite the chaos that surrounds the United States.

5 things to consider with Bitcoin this week5 things to consider with Bitcoin this week

The SP 500 was a solid pre-business on Monday. fueled by the strange combination of the reopening of the US economy, but massive protests across the country continued.

Bitcoin seemed to be gaining value through protests late last monthHowever, their general relationship with traditional markets has weakened since the two collapsed in mid-March.

Oil also followed the excitement after members of OPEC + agrees to extend the production cut.

Bitcoin supporters have raised the alarm over the apparent “recovery” in stock market action against the corona virus. In particular, Max Keizer has repeatedly warned that central bank purchases of junk bonds have created false competition and undermined the integrity of the markets.

Difficulty and hash rate strengthen BTC

Bitcoin fundamentals are continuing their upward trend after the second negative difficulty adjustment in a row last week.

Both the difficulty and the hash rate improved their position last week;; The latter was 111 EH / s, which is 4% more since Friday.

The difficulty, as Cointelegraph reported, was to reserve a third downward correction within a week, but on Monday it fell to a -0.7% forecast.

This reduction is just another sign of this Bitcoin “takes care of itself” as it is intended, through difficulty adjustments that encourage miners’ participation and stabilize the average times of the blocks.

Along with the difficulty Other mining-related data have shown similarities to the Bitcoin bear market low in December 2018.

Bitcoin hash rate 1-month-7-day average table

Bitcoin hash rate chart, 1-month, 7-day average. Source: Blockchain

Futures gaps are kept away

Just like last week, the small weekend price change means that A sudden change that closes the gaps in the Bitcoin futures markets is off the table.

As already mentioned, When Bitcoin futures markets start a new week in a different location than the one they left earlier, BTC / USD tends to “fill” the resulting gap.

The biggest gap in history was closed in May in a few days, but there was no significant volatility this weekend.

CME Bitcoin futures chart shows a big gap

The CME Bitcoin futures chart shows a big gap. Source: TradingView

Little hope of reaching $ 10,000

Despite the ups and downs in the $ 9,000 range Cointelegraph analysts believe Bitcoin will be in no hurry to reach the $ 10,000 support.

The analyst filbfilb warned of this in a market report on Friday The short-term maturities are not yet optimistic, while the CME futures volumes “clearly favor” the declining mood.

He added that expectations for a decisive boost above $ 10,000 are not on the market this year.

Looking into the future The lower levels – especially $ 8,100 – were likely key areas to be seen over the coming months.

Merchants’ feelings become “neutral”

The market sentiment calmed down even further for an indicator of the measurement conditions.

The Fear and Greed Cryptocurrency Index remained “neutral” on Monday, weakening its previously more volatile values.

Fear and greed relate to how overly bullish or bearish the market is, what buying options imply, or whether a correction is needed.

At 53/100, The index is currently in the middle of its scale after spending a record time in its bearish “fear” zone.

Crypto Fear  Greed Index 3-month chart

3-month chart of the Cryptocurrency Index of Fear and Greed. Source: Alternative.me

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