On Monday, Bitcoin (BTC) started fighting again to hit $ 59,500. Will we see Bitcoin hit $ 60,000 this week? After a promising but subdued weekend, BTC / USD is once again beating resistance as major markets reopen. Bulls may be cause for celebration in the coming days, given the strength of the underlying technology and buyer demand.
However, the resistance has kept them in check for weeks. Five points have been presented by Cointelegraph that can help shape Bitcoin’s price action.
Due to oil pipeline attack, dollar is falling
In Asia, stocks started on a known positive note as traders bet on existing highs that kept coming. Last week, a new all-time high for the S&P 500 index sparked a cheery mood. The coronavirus pandemic did not detract from the historical returns for various markets.
The ransomware attack in the United States, which pushed oil prices to the highest level in three years before the market calmed down, dictated the commodities. According to Bloomberg in a government statement, this disruption to the distribution of refined gasoline and jet fuel underscores the vulnerability of their national critical infrastructure in cyberspace and the need for effective cybersecurity measures.
When the attack struck, the dollar suffered, with the US dollar currency index (DXY) suddenly falling in one move. This pushed Bitcoin up above $ 58,000. When the pipeline was still closed on Monday, only a modest recovery was observable, opening up the potential for further DXY gains for BTC / USD.
DXY and Bitcoin tend to be inversely correlated, but this relationship has become more unpredictable this year. As Cointelegraph often reports.
Boost in great difficulty followed by record hash rate
Bitcoin is ready for action, at least when it comes to network fundamentals. Network strength and associated price performance have been solidly restored. After the sudden drop in hash rate last month, linked to flooding of miners in China. The process was already clear last week, with commenters noting that the negative impact of the event was practically already behind Bitcoin. Netherlands Crypto is popular.
However, predictions now reflect unprecedented interest and competition among miners, along with a strong commitment to the network’s future. The hash rate is now at new all-time highs, according to data from on-chain monitoring resource Blockchain.com. The seven-day average has gone from 131 exahashes per second on April 25 to 177 EH / s from Monday.
The difficulty is now also up for quite a bit when it adjusts again in about two days. This was automatically adjusted downwards to take into account the decrease in the number of miners. The expected difficulty is the largest, at 13.5%, since June last year. Bitcoin hodlers could experience the knock-on price benefits in the coming weeks if the old adage “price follows hash rate” turns out to be as true today as it was before.
On the verge of a $ 60,000 target, for BTC price
In terms of price advantages, traders are looking for a “springboard” effect in BTC’s spot price action this week that could lead to a breakout. Bitcoin will make a more dedicated statement. After climbing and falling, but broadly reaching higher peaks and troughs in recent days.
Crypto Ed, the popular trader, said on Monday that before a rebound removes the crucial USD 60,000 resistance zone, a downward move from current levels near USD 59,000 should end about USD 800 lower. He indicated on Twitter that BTC plan for today is a smaller correction after 5 legs up.
He is also looking for a bounce and continuation to 62k and then 68k. Potential bounce area is between 58100 and 58200, according to Crypto Ed on Twitter. For several weeks now, the battle for ultimate resistance has been raging against all-time highs of $ 64,500. Every attempt to overcome sellers ended in a price dip of varying strengths.
A look at the order book structure of the largest exchange worldwide by volume, Binance, showed that the $ 60,000 zone was still holding up Monday. It was supported by raised sales walls below the highlights. By contrast, buyer support was only present near USD 50,000, providing a wide potential trading range if the BTC / USD declines again.
$ 4,000 surpassed by Ether
Altcoins are already doing well this week, so Bitcoin may have to wait for its ultimate push to beat the highs. Altcoins are led by Ether (ETH), while Monday saw a return to form for the majority of large-cap cryptocurrencies after a mixed performance over the weekend. It remains a surprise that ETH / USD soared past USD 4,000 on the day and showed no signs of slowing down.
As it hit new all-time highs, confirming traders’ predictions of a $ 5,000 attack. Beyond the simple price action, the gains of the largest altcoin were clearly visible. Ether’s total share of the cryptocurrency market cap is now 19.1%, according to data from analysis source CoinMarketCap. Cryptocurrency in France is popular.
On Monday, that market cap has passed $ 2.5 trillion, as Bitcoin’s stock fell closer and closer to 40%. With an increase of 31% in a week for the ETH / USD, other altcoins started copying the success. Cardano (ADA) matched its gains, while Litecoin (LTC) and Bitcoin Cash (BCH) both delivered nearly 50% weekly returns.
By contrast, high flyers from before were much calmer. In doing so, Dogecoin (DOGE) and Ethereum Classic (ETC) were both flat after hitting their own record highs last week.
The position of strong hands is increasing
In the meantime, you get the familiar feeling that everything is going well in Bitcoin if you escape the short-term story for a moment. Willy Woo, the popular statistician, says that while altcoins soar in trading frenzy, a slow but steady transfer of Bitcoin wealth from weak to strong hands continues.
Woo emphasized that this year’s bull run is different from the rest, when analyzing data late last week. Because speculative hands don’t last long and seasoned hodlers are buying up the slack at higher prices than ever. He summarized with data from the on-chain monitoring resource Glassnode that this cycle is different. The movement of coins to strong holders is unprecedented, according to Woo.
The trend has featured different phases of 2021 when it comes to BTC price, as reported by Cointelegraph.