Skip to content

5 things to consider with Bitcoin this week

June 1, 2020

Bitcoin (BTC) enters the third week of its new halving cycle Only $ 550 away from the five numbers, but what could really affect the price this week?

Cointelegraph takes a look at the main factors that may be helpful or cause difficulties for the largest cryptocurrency in the coming days.

Stocks and oil contrast with BTC stability

The traditional markets got off to a difficult start this week. Protests in the United States have joined President Donald Trump’s gentler response to China via Hong Kong to worry about the already frightened actions.

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

As a result of this uncertainty The safe harbor assets are recovering. Gold has risen by $ 50 since May 27and at press time, it is trading at $ 1,743, near its 2011 highs.

Oil is also falling in the U.S., which could benefit cryptocurrency minersAndreas Antonopoulos argued.

As Cointelegraph reported Bitcoin has shown another “decoupling” of macro movements in recent weeksand the potential to follow gold remains.

The data currently show that Bitcoin achieved a return of almost 50% in the second quarter alone.

Quarterly Bitcoin return. Source: Skew

Adjust the level of difficulty for the incoming double descent

However, other things are the same, Bitcoin is still facing downward difficulty adjustments in three days.

One of the most important features of the Bitcoin network, Automatic adjustments ensure that miners continue to receive incentives to participate in transaction validation.

As mentioned above, Bitcoin has not made two consecutive downward corrections since then the low point of its bear market in December 2018.

Graph of the estimated bitcoin hash rate for a month. Source: Blockchain

Contrary to the difficulty The hash rate is slowly increasing this weekand hits about 95 trillion hashes per second on Monday. The adjustment should favor this upward trend in the short term.

Sales of miners are falling

Halving last month has cut BTC miners’ income by 50%, but the outflows accelerated after the event. A time long Miners sold more BTC than they earned.

This trend has calmed down in the past ten daysand drains were drastically reduced.

Bitcoin mining group annual flow chart. Source: CryptoQuant

The slightest desire to sell BTC holdings coincides with consumer activity: Hodler have withdrawn from the stock markets more than ever since the lows in December 2018.

Furthermore, 60% of the Bitcoin offer has not changed in a year or more, somewhat true in the past five months despite considerable price fluctuations.

Analytical circles are currently controversial as to whether stock market redemptions are an indication that investors expect a bullish rise.

There is no gap in the futures to drive the price

CME Bitcoin futures appear to be ready to open a short distance from where they closed on Friday.

This narrow “market gap” leaves less chance of sudden movements bitcoin up or down to “fill” it.

As Cointelegraph has often said BTC / USD tends to close gaps in futures. The past two weeks have been no exception as large and small gaps filled within a few days of opening.

CME Bitcoin futures with a gap of $ 9,510. Source: TradingView

The excitement of the camp flow begins again

At a central price of USD 9,500 Bitcoin behaves exactly as predicted, according to the creator of the historically very accurate stock-to-flow price model.

As Cointelegraph reported On June 1st there was a crucial “red dot” in the modelthat previously signaled the start of a bullish phase.

So that the stock can flow, each bullish phase increases the price by an order of magnitude;; This time, the highs for 2024 could hit $ 576,000 or more.