How Will Bitcoin Behave This Week? Experts Opinion
Bitcoin was down 13% over the previous week and BTC was trading at $44,756 on Monday at the time of writing.
According to Cointelegraph, there are several things that traders should look out for in order to understand where the course will move in the future.
Stocks will rise this week and bring some relief to Bitcoin, despite the fact that the world still sees Bitcoin as an asset risk, according to Capriole CEO Charles Edwards.
He added that almost every Bitcoin correction in 2021 correlated with a -2% or more correction in the S & P500.
Plus, strong stocks can hold back the strength of the US dollar, which will give Bitcoin a little breathing room as well. Last week, the US Dollar Index (DXY) rallied and consolidated at 93.
Moskovski Capital CEO Lex Moskovsky said the stablecoin’s liquidity is growing, Bitcoin has hit a 3-year low on exchanges, and normies are waking up.
He added that macroeconomic markets did start the week in positive territory and that stablecoins, which are not used as collateral for the sale, are a clear optimistic argument.
At the moment, experts are considering the marks of 43,000 and 38,000 dollars as potential minimum prices. However, a rebound from such levels is still possible.
Historically, September does not bring positive changes for the Bitcoin exchange rate. Therefore, the growth potential will most likely resume not earlier than October.
“More often than not, bitcoins after the red period in September have a big jump in prices in the 4th quarter,” said analyst Lark Davis on Twitter.
The graph shows that between 2013 and 2017, Bitcoin fell to form a new lower paradigm in May, and this trend eventually continues.
Most notable against the backdrop of the fall in the exchange rate was the fact that investors continued to buy Bitcoins. Last week speculators dumped excess supply into the market, which was bought up by strong hands.
According to statistician Willie Wu, each class of bitcoin investors either increased their positions or remained neutral.
As analyst William Clemente noted, the past week had little effect on Hodler’s models:
“93% of the Bitcoin supply has not moved for at least a month. This is a record high. This is just another proof of how bullish the supply dynamics is in the market.
As for the indicators of fear and greed of investors (Crypto Fear & Greed Index), the fall to $42,800 led to a reduction in its values from “extreme greed” to “fear”. These sentiments persisted until Sunday.
However, by the end of the weekend, this index added a new “greed” to this series, despite the fall in prices.
As of Monday writing, Fear & Greed is at 44/100 – still in “fear” territory – while BTC / USD is trading below $45,000.
Funding rates on different exchanges, while slightly positive, nevertheless do not exclude the possibility of a “short squeeze”, which increases the price characteristics.