Bitcoin (BTC) entered a new week above $57,000 after a late surge produced a much better-than-expected weekly close. Compensating for last week’s coronavirus-induced sell-off and the associated price drop, Bitcoin surpassed $58,000 overnight. So, what will affect the Bitcoin and altcoin market this week?
Bitcoin bounces back in record time
Just three days after losing $6,000 in a single daily candle, BTC price action has returned from the brink. It recorded a weekly close of $57,300 on Sunday, thus avoiding recording the lowest weekly closing price in two months. Trader and analyst Rekt Capital noted that the 21-week exponential moving average (EMA) of $52,500 provides support as a “time-tested bull market indicator.”
“One daily candle of 7 percent was all it took for a new BTC bear market to dispel all fears and worries,” Rekt Capital added. He said that when it comes to the monthly close due at the end of Tuesday, BTC/USD is “going positively.”
Coronavirus and March 2020 recurrence
Macro markets had a tumultuous start to the week, as the new Coronavirus variant ohmron continues to affect market sentiment. “We really need more answers to understand the impact on growth,” said Priya Misra, head of global ratio strategy at TD Securities. While Bitcoin is on the rise, further shocks in macro structures could curb the newfound optimism, experts say. The bulls hope that the scenario will play out similarly to March 2020, when the coronavirus caused a surge on the world stage.
According to the data, there is a huge sales wall
A giant buy wall is currently in operation and should keep the market above $50,000, according to the latest orderbook data from analytics resource Material Scientist. Material Scientist wrote on Twitter on Sunday, “I’m not sure why you’re so scared. This is the biggest offer since the 30k bottom,” he said.
Material Scientist meanwhile pointed out something unusual – the same wallet in support, the same wallet in resistance at $70,000. “Actually, 1 actor holds the entire market,” explained Material Scientist. He claimed that they knew 1 month in advance how all this would turn out.
Important date for three Bitcoin price correlations
According to experts, the next few weeks will “tell a lot” for Bitcoin as it creates or breaks some important correlations. As Bitcoin continued to replicate the journey of gold in the 1970s, this was the conclusion popular Twitter analyst TechDev drew over the weekend. The interesting similarities between BTC/USD in 2020-21 and XAU/USD fifty years ago persisted despite some volatility anomalies in Bitcoin price action. If the trend continues, Bitcoin faces a dramatic rise with a price of up to $280,000. The deadline is mid-February 2022.
Beyond gold are the Fibonacci sequences that determine the other two correlations. According to experts, both of these relate to Bitcoin’s performance in 2017, and both remain valid so far. If one beats the other, the pace and height of price gains will change accordingly. A peak of around $150,000 could come by mid-December, or alternatively, mid-February to $225,000, according to TechDev.
Where will Bitcoin end the “Moonvember”?
In a poll that ended Monday and was conducted by the Bitcoin account on Twitter, the majority of nearly 50,000 respondents predicted that BTC/USD will end November above $60,000. 35 percent of respondents chose the highest price possible in the survey, and 25.7 percent estimate the November closing price will be between $55,000 and $60,000.
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