Bitcoin (BTC) is back with a vengeance this week as a new day’s trading gets underway with a fresh attack on $60,000.
After a weekend in which the largest cryptocurrency avoided a correction, Monday is looking bullish — but what could shape price action in the short term?
Cointelegraph presents five factors to keep an eye on for Bitcoin traders as the market inches closer to historic all-time highs.
Stocks reflect coronavirus mayhem
The macro picture is a tale of two coronavirus moods this week.
With the United Kingdom exiting lockdown, sentiment among business leaders has bounced to highs, indicative of pockets of optimism surfacing in the West still battered by coronavirus restrictions.
The picture is muddied by eurozone main players France and Germany, in which the picture is much less rosy, while the United States is also a patchwork of policy when it comes to the virus.
As such, stocks are broadly flat as the week begins, while elsewhere, a looming lockdown is sending sentiment plummeting in India, Monday’s main downward mover.
The controversial measures from Delhi “are unnerving markets and no one is sure whether lockdowns will help bring cases under control,” Deepak Jasani, head of retail research at HDFC Securities told Bloomberg.
“The incentive to try and bottom-fish at this point is limited for traders.”
Markets commentator Holger Zschaepitz, meanwhile, described a “busy” week for equities, noting new highs for mainstream risk assets on Friday — something which increasingly includes Bitcoin.
Breakout on the cards for Bitcoin
The signal of the moment within Bitcoin is finally tied to the spot market.
On Monday, $60,000 is back after BTC/USD last passed the significant price level early on Saturday.
The weekend saw the largest weekly close in Bitcoin’s history at around $60,000.
At the time of writing, the BTC/USD pair is targeting $61,000 again, less than $1,000 from all-time highs. Among analysts, expectations of Bitcoin reentering uncharted territory are predictably high.
“Another breakout attempt,” on-chain analytics service Skew summarized.
A look at order book activity on major exchange Binance shows sellers lined up at $60,500, $61,500 and $62,000 before orders begin to dry up. On the buy side, $59,000, $58,000 and $57,000 remain strong areas of interest.
The resulting constriction of volatility, with Bitcoin sandwiched between major buy and sell interest, is a classic signal for the final stages of price consolidation. At 50 days, Bitcoin has now been in such a consolidatory regime since hitting $58,300 for the first time in the last week of February.
For popular Twitter trader Crypto Ed, the latest move is surprising, as just last week, more bearish signals filled the low-timeframe landscape. Sunday, in addition, was pointing to an incoming drop.
“Surprising PA this morning invalidating this idea,” he commented.
Coinbase punctuates booming on-chain…
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