Bitcoin (BTC) has a consolidated profit of nearly $ 8,000. But has it reserved that the asset leaves the stocks in the dust next week?
After BTC / USD rose 10% in one day last week, BTC / USD maintained its gains over the weekend. Cointelegraph takes into account the main factors that traders need to consider to avoid an unpleasant surprise.
New warnings for actions
The shares continue to rise and Bitcoin continues to move in line with the mood on the stock market.
Although it has reduced its correlation in the past few weeks, Bitcoin continues to be sensitive to large movements on Wall Street. Prices are still up there this week, but not everything is what it seems, analysts warn.
“”Significant declines in the market breadth in the past have often signaled strong market declinesBloomberg quoted strategists at Goldman Sachs on April 27.
The breadth of the narrowness can be long, but past episodes have signaled below-average market returns and possible momentum reversals.
Bitcoin chart versus 3-month SP 500. Source: Skew
The warning that current rapid gains could lead to losses takes advantage of existing concerns about the paradoxical status quo of the markets. Despite the millions of unemployed, small business explosions and billions of dollars in printing, inventories continue to improve.
Oil prices lose a lot when trading begins
Oil continues its long sale. On Monday morning, WTI fell nearly 10%, while Brent fell 3.2% to almost $ 20 a barrel.
There doesn’t seem to be a hiatus in sight for a market hit by unprecedented negative prices last week. Demand is unlikely to pick up over several months while warehouse facilities are almost exhausted.
An earlier attempt by the OPEC + countries to reduce production was not enough, according to commentators.
In general Bitcoin is less affected by oil problems than other markets.
The money printing machine is still running
Central banks continue to put more worthless money in the troubled economy and increasingly “neo-feudal”.
On Monday, the Bank of Japan’s turn to announce a flood of paper and say it would buy unlimited bonds to incentivize loans.
There are still doubts as to whether the US Federal Reserve and the European Central Bank will follow suit, as the former has already increased its balance sheet to a record $ 6.6 trillion.
The bitcoin basics are constantly improving
For the participants of the Bitcoin networkin the meantime The picture is increasingly verifiable and positive.
The hash rate has recovered well since falling after the March price drop. Consolidation with around 115 trillion hashes per second (h / s). Blockchain estimates this is only 7 trillion h / s below the all-time high of early last month.
The difficulty of mining is also fixed for a healthy recovery of 3.2% in the next adjustment in about eight days. This follows a larger 8.5% increase than previously reported by Cointelegraph.
In general the implied volatility, according to the resource monitor Aslant, it is now almost back to the level at the beginning of March.
Analyst dispels myths about fall due to halving May
Just over two weeks until Bitcoin halves. At this point, the bitcoin block grant drops from 12.5 BTC to 6.25 BTC per block.
This significantly reduces the miners’ income and at the same time increases the ratio of inventory to flow at Bitcoin, since fewer “new” Bitcoins are created compared to the existing offer.
Some analysts feared that falling profits could cause problems for miners, but the creator of the pioneering stock-to-flow pricing model for Bitcoin now believes otherwise.
“”The halving data for 2012 and 2016 show that the difficulty is NOT corrected downwards, but increases further after halving.“says a Tweet by PlanB on Friday.
YA miners have invested in new mining equipment and are prepared for -50% sales.