‘Best Bear Market Ever’ – 5 Things to Watch During Bitcoin Week
Bitcoin (BTC) started the week with a critical downward move – but a move that didn’t shake investor confidence in the bull cycle.
On a mixed weekend, Bitcoin/ USD closed above $ 47,000, only to lose all previous gains to challenge the $ 45,000 support a few hours later.It’s a delicate situation – Bitcoin and stocks and sentiments are suffering from the Evergrande incident in China. What could affect the cryptocurrency market?
With analysts anticipating a “changing” week for Bitcoin price action, Cointelegraph will be looking at five factors worth considering when plotting where Bitcoin could go in the short term.
El Salvador “buy pickled”
Bitcoin’s spot price action barely inspired traders earlier in the week.
The reversal from previous strength on Sunday added up overnight and Bitcoin/ USD lost the $ 46,000 mark.
Amid the turmoil in traditional markets led by Evergrande history in China, this week may not offer profitable deals. Now is the time for famous trader Pentoshi to buy stocks and wait for the situation to resolve on its own.
I’m definitely in the long run. I am optimistic. Said it last week. I think this week is going to be loud. Much information is missing. I think we could go up to 41k but IMO we’re going to 56-58 and so it’s just cold
– Pent shi don’t want you DM (@ Pentosh1) September 20, 2021
As Cointelegraph reported, $ 44,000 represents a wall of support that Bitcoin is now expected to retest. A deeper decline could fetch $ 41,000 or even $ 38,000, with the latter forming a key Fibonacci retracement level.
Overall, however, sentiment remains in favor of a recovery in the crypto markets in the fourth quarter.
Among those “buying at a discount” is the El Salvador government, which confirmed Monday that it had bought an additional 150 Bitcoin for a total of 700 Bitcoin.
“They can never beat you if you buy discount money,” said Chairman Nayib Bukele speak in a series of tweets about his country’s bitcoin policy.
Bitcoin holds up “like an absolute champion”
It’s a tough environment out there, and all in all, Bitcoin is doing much better than expected, analysts say.
With stocks and gold as a safe haven, the picture is sure to be less rosy this week. For example, the S&P 500 is well on its way to closing below its 50-day moving average for the first time since June.
Gold is heading for its lowest level since April, while the precious metal is almost at a 20-year low against the Nasdaq 100 index, as experienced trader Peter Brandt noted.
The price of gold is approaching the lowest value ever recorded in 2000 against the NASDAQ 100 index$ NDX $ QQQ $ NQ_F #YELLOW $ GC_F $ GLD pic.twitter.com/C19m6fT46G
– Peter Brandt (@PeterLBrandt) September 18, 2021
“With the dollar rising (it’s near a cyclical high), stocks weakening, and metal falling, Bitcoin is behaving like an absolute champion as it rejects the concept of going into the depths of the low cycle. Relatively v.strong ”, writes entrepreneur, entrepreneur and investor Bob Lukas all in one. current summary the situation.
The strength of the US dollar is clearly noticeable, the US dollar currency index (DXY) is approaching 94 in a classic headwind for Bitcoin.
When the status quo begins to change, the momentum for Bitcoin to work is much stronger and therefore clearly there.
Bitcoin is about to increase its difficulty level five times for the first time since 2019
Bitcoin fundamentals have never looked better – a cliché maybe, but this week the numbers speak for themselves.
Both the difficulty and hash rate firmly deny the downtrend, showing that the miners’ fundamental beliefs are still bullish.
Mining troubles, which have been responsible for the impact of May mining activity in China for months, rose for the fifth consecutive year on Tuesday.
This is a rare occurrence – the last time the difficulty increased 5x in a row began in late 2019, before the cross-market crash in March 2020 put the mood down. Even the subsequent bull, which hit an all-time high of $ 64,500, failed to repeat the feat.
Hence, for those who believe that price movement depends on the fundamentals of the network, the outlook is more optimistic than ever.
The hash rate confirms that despite the average price move over the past week, estimates continue to suggest 140 exahashes per second (EH / s) for the network, which is just 17% below all-time highs.
For investor Vince Prince, a regulator commentator on hash rate performance, the recent contrast between the metric and spot prices is cause for confidence.
grandfather summary last week.
“This shows the relative strength of the increased demand.”
Zoom out, it “shows up”
Bitcoin’s actual limit is now well above the 2017 spot price all-time high at $ 21,000. Its 200-week moving average (WMA), often viewed as the defining floor, is a level that BTC / USD has never broken currently at $ 15,600.
These aren’t just numbers, said analyst PlanB, who builds bitcoin pricing models from stocks to streams.
The relationship between the actual limit – an expression of market capitalization based on the price each bitcoin last moved – and the 200WMA is a useful measure of market growth potential.
Earlier price cycle peaks, particularly in late 2013 and 2017, were accompanied by a large gap between the two indices. This time, however, the opposite is the case – and the odds for Bitcoin are on a solid “buy”.
Not really, the realized limit is much higher than the 200WMA at the previous highs:
Peak 2013: 320/49 = 6.5
Top 2017: 5k / 1.4k = 3.6
today: 21k / 16k = 1.3 (so IMO we are fine, top has not come yet)– PlanB (@ 100 trillion USD) September 19, 2021
As Cointelegraph reported, the estimate calls for a six-digit BTC price by the end of the year. The fourth quarter should be the stepping stone, with October providing a solid foundation with a minimum monthly close of $ 63,000.
“$ 63,000 in October only + 31% from today,” PlanB Add last week.
The “worst case” in September while the monthly closing price is $ 43,000.
“Best Bear Market Ever”
Historically, it was a classic setup that ruled out major periods of bullish price action – Bitcoin was relatively close to all-time highs, but nobody cared about it.
Related: Top 5 Cryptocurrencies You Should See This Week: BTC, DOT, LUNA, ATOM, FTT
Although BTC / USD is trading at nearly $ 50,000, it is becoming less and less of an issue this month – a trend that is also becoming evident among internet users.
Data from Google Trends shows that “Bitcoin” is no longer as popular as it was in mid-July, when BTC / USD was trading above $ 30,000.
Only in December 2020 was the search interest relatively lower, which happened before the actual main phase of the Bitcoin bull run.
However, as analyst William Clemente suggests, such conditions are perfect for BTC price action to cause an unexpected shock.
“Bitcoin broke out of a bull run last night and hit a higher score, funding was 0.01% and my feed was dead silent. Excellent, ”he said tweeted Sunday used to be ironic describe The current situation is “the best bear market ever”.
Investor sentiment is also at an ideal level for the time being, with the Crypto Fear & Greed Index in the “neutral” area as Bitcoin reverses the last resistance before USD 50,000.
The numbers show that, in line with the speculative trade write-off in early September, “greed” has not yet returned to a prominent feature in the crypto market.
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Author
Bitcoin
‘Best Bear Market Ever’ – 5 Things to Watch During Bitcoin Week
Bitcoin (BTC) started the week with a critical downward move – but a move that didn’t shake investor confidence in the bull cycle.
On a mixed weekend, Bitcoin/ USD closed above $ 47,000, only to lose all previous gains to challenge the $ 45,000 support a few hours later.It’s a delicate situation – Bitcoin and stocks and sentiments are suffering from the Evergrande incident in China. What could affect the cryptocurrency market?
With analysts anticipating a “changing” week for Bitcoin price action, Cointelegraph will be looking at five factors worth considering when plotting where Bitcoin could go in the short term.
El Salvador “buy pickled”
Bitcoin’s spot price action barely inspired traders earlier in the week.
The reversal from previous strength on Sunday added up overnight and Bitcoin/ USD lost the $ 46,000 mark.
Amid the turmoil in traditional markets led by Evergrande history in China, this week may not offer profitable deals. Now is the time for famous trader Pentoshi to buy stocks and wait for the situation to resolve on its own.
I’m definitely in the long run. I am optimistic. Said it last week. I think this week is going to be loud. Much information is missing. I think we could go up to 41k but IMO we’re going to 56-58 and so it’s just cold
– Pent shi don’t want you DM (@ Pentosh1) September 20, 2021
As Cointelegraph reported, $ 44,000 represents a wall of support that Bitcoin is now expected to retest. A deeper decline could fetch $ 41,000 or even $ 38,000, with the latter forming a key Fibonacci retracement level.
Overall, however, sentiment remains in favor of a recovery in the crypto markets in the fourth quarter.
Among those “buying at a discount” is the El Salvador government, which confirmed Monday that it had bought an additional 150 Bitcoin for a total of 700 Bitcoin.
“They can never beat you if you buy discount money,” said Chairman Nayib Bukele speak in a series of tweets about his country’s bitcoin policy.
Bitcoin holds up “like an absolute champion”
It’s a tough environment out there, and all in all, Bitcoin is doing much better than expected, analysts say.
With stocks and gold as a safe haven, the picture is sure to be less rosy this week. For example, the S&P 500 is well on its way to closing below its 50-day moving average for the first time since June.
Gold is heading for its lowest level since April, while the precious metal is almost at a 20-year low against the Nasdaq 100 index, as experienced trader Peter Brandt noted.
The price of gold is approaching the lowest value ever recorded in 2000 against the NASDAQ 100 index$ NDX $ QQQ $ NQ_F #YELLOW $ GC_F $ GLD pic.twitter.com/C19m6fT46G
– Peter Brandt (@PeterLBrandt) September 18, 2021
“With the dollar rising (it’s near a cyclical high), stocks weakening, and metal falling, Bitcoin is behaving like an absolute champion as it rejects the concept of going into the depths of the low cycle. Relatively v.strong ”, writes entrepreneur, entrepreneur and investor Bob Lukas all in one. current summary the situation.
The strength of the US dollar is clearly noticeable, the US dollar currency index (DXY) is approaching 94 in a classic headwind for Bitcoin.
When the status quo begins to change, the momentum for Bitcoin to work is much stronger and therefore clearly there.
Bitcoin is about to increase its difficulty level five times for the first time since 2019
Bitcoin fundamentals have never looked better – a cliché maybe, but this week the numbers speak for themselves.
Both the difficulty and hash rate firmly deny the downtrend, showing that the miners’ fundamental beliefs are still bullish.
Mining troubles, which have been responsible for the impact of May mining activity in China for months, rose for the fifth consecutive year on Tuesday.
This is a rare occurrence – the last time the difficulty increased 5x in a row began in late 2019, before the cross-market crash in March 2020 put the mood down. Even the subsequent bull, which hit an all-time high of $ 64,500, failed to repeat the feat.
Hence, for those who believe that price movement depends on the fundamentals of the network, the outlook is more optimistic than ever.
The hash rate confirms that despite the average price move over the past week, estimates continue to suggest 140 exahashes per second (EH / s) for the network, which is just 17% below all-time highs.
For investor Vince Prince, a regulator commentator on hash rate performance, the recent contrast between the metric and spot prices is cause for confidence.
grandfather summary last week.
“This shows the relative strength of the increased demand.”
Zoom out, it “shows up”
Bitcoin’s actual limit is now well above the 2017 spot price all-time high at $ 21,000. Its 200-week moving average (WMA), often viewed as the defining floor, is a level that BTC / USD has never broken currently at $ 15,600.
These aren’t just numbers, said analyst PlanB, who builds bitcoin pricing models from stocks to streams.
The relationship between the actual limit – an expression of market capitalization based on the price each bitcoin last moved – and the 200WMA is a useful measure of market growth potential.
Earlier price cycle peaks, particularly in late 2013 and 2017, were accompanied by a large gap between the two indices. This time, however, the opposite is the case – and the odds for Bitcoin are on a solid “buy”.
Not really, the realized limit is much higher than the 200WMA at the previous highs:
Peak 2013: 320/49 = 6.5
Top 2017: 5k / 1.4k = 3.6
today: 21k / 16k = 1.3 (so IMO we are fine, top has not come yet)– PlanB (@ 100 trillion USD) September 19, 2021
As Cointelegraph reported, the estimate calls for a six-digit BTC price by the end of the year. The fourth quarter should be the stepping stone, with October providing a solid foundation with a minimum monthly close of $ 63,000.
“$ 63,000 in October only + 31% from today,” PlanB Add last week.
The “worst case” in September while the monthly closing price is $ 43,000.
“Best Bear Market Ever”
Historically, it was a classic setup that ruled out major periods of bullish price action – Bitcoin was relatively close to all-time highs, but nobody cared about it.
Related: Top 5 Cryptocurrencies You Should See This Week: BTC, DOT, LUNA, ATOM, FTT
Although BTC / USD is trading at nearly $ 50,000, it is becoming less and less of an issue this month – a trend that is also becoming evident among internet users.
Data from Google Trends shows that “Bitcoin” is no longer as popular as it was in mid-July, when BTC / USD was trading above $ 30,000.
Only in December 2020 was the search interest relatively lower, which happened before the actual main phase of the Bitcoin bull run.
However, as analyst William Clemente suggests, such conditions are perfect for BTC price action to cause an unexpected shock.
“Bitcoin broke out of a bull run last night and hit a higher score, funding was 0.01% and my feed was dead silent. Excellent, ”he said tweeted Sunday used to be ironic describe The current situation is “the best bear market ever”.
Investor sentiment is also at an ideal level for the time being, with the Crypto Fear & Greed Index in the “neutral” area as Bitcoin reverses the last resistance before USD 50,000.
The numbers show that, in line with the speculative trade write-off in early September, “greed” has not yet returned to a prominent feature in the crypto market.
.
.
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