Bitcoin (BTC) started the new week around $42,000. BTC/USD is almost exactly where it was in the second week of January 2021. So, will the status quo change? What can set prices this week?
Will these levels continue to be seen in Bitcoin price?
Bitcoin has spent the weekend worried as it approaches the $40,000 support, the latest in a series of sudden downside moves. Ironically, that was the level in focus on the same day in 2021. A breakout to the $30,000 zone seems likely among analysts.
“Theoretically, there is a good chance of a weekly close above around $43,200 for BTC to enjoy a green week next week,” analyst Rekt Capital says. If there is a weekly close below $43,200, he thinks the decline may continue. Trader and analyst Pentoshi predicted, “I think the market is making a lower high,” adding that he believes $40,700 will eventually drop.
What does the macroeconomic landscape point to BTC?
This week’s macro picture looks complicated. It looks like the United States Federal Reserve will start raising interest rates in the coming months, which is putting investors off risk and causing headaches for crypto bulls. cryptocoin.com As we have reported, this perspective was summarized by former BitMEX CEO Arthur Hayes as follows:
Let’s forget what non-crypto investors believe; My view of the sentiment of crypto investors is that they naively believe that the entire complex’s network and user growth fundamentals will allow crypto assets to continue their upward trajectory unabated. In my view, the detrimental effects of rising interest rates on future cash flows will likely prompt speculators and margin investors to dump or drastically reduce their crypto holdings.
RSI at two-year low
On-chain indicators are calling for bullishness, and the historical context serves to support these claims. This week, Bitcoin’s relative strength index (RSI) continues to hit the headlines, reaching two-year lows. The RSI is a fundamental metric used to determine whether an asset is “overbought” or “oversold” at a particular price point. Currently, the indicator appears to be “oversold”.
Hashrate makes up for Kazakhstan losses
After hitting all-time highs in recent weeks, Bitcoin’s hashrate took a hit when turbulence in Kazakhstan compromised internet availability. Home to about 18 percent of Bitcoin’s hashrate, Kazakhstan has since stabilized, allowing the hashrate to return to previous levels of 192 exahash (EH/s).
Despite the turmoil, Bitcoin’s network difficulty still managed to gain modest gains this weekend. An increase is also expected in its next auto-tuning, which will take place in less than two weeks.
PlanB’s bullish Bitcoin review
Analyst PlanB, creator of the stock-to-flow Bitcoin model, is still more optimistic than most when it comes to medium and long-term price action. “I know some people have lost faith in this Bitcoin bull market,” he said this weekend. However, he states that we are still halfway through the halving cycle covering the years 2020-2024, and he believes the target is still at $288,000.
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