Following Bitcoin (BTC) and BTC, altcoins have started a new week with a decidedly bearish move. Over the weekend, the BTC/USD pair closed above $47,000, but the $45,000 support levels were challenged in the morning. So, what might affect the cryptocurrency market this week?
El Salvador buys Bitcoin from the bottom
Amid traditional market turmoil fueled by the Evergrande crisis in China, it’s time for popular trader Pentoshi to take stock and wait for the situation to resolve itself. Meanwhile cryptocoin.com As we reported, among the “buys on the down” is the government of El Salvador, which confirmed on Monday that it has purchased a total of 150 BTC. The total amount held by the country was 700 BTC. “If you buy the Bottoms, they will never beat you,” said President Nayib Bukele regarding his country’s Bitcoin policy.
Bitcoin comment from analysts
Against the Nasdaq 100 Index, senior trader Peter Brandt noted that the precious metal is at lower levels than it was almost 20 years ago, as gold is heading towards April lows. On top of that, investor Bob Lukas said, “Given the rise in the dollar, the weakness in stocks, the decline in metals, BTC is acting like an absolute champion as it rejects the idea of going into a deep low cycle. It’s relatively strong,” he says.
Fifth consecutive increase in difficulty: Positive outlook in network fundamentals
Both the difficulty and hash rate stubbornly reject the downward trend on the Bitcoin network, which, according to experts, shows that miners’ faith continues to rise unwaveringly. Mining difficulty, which dampened the impact of the Chinese mining route in May, will make its fifth consecutive increase on Tuesday. Five consecutive difficulty increases were last seen at the end of 2019.
An upward trend is observed when viewed from a broad perspective.
Bitcoin’s realized value is now higher than its 2017 all-time high of $21,000. The 200-week moving average (WMA), which is generally considered a firm price floor and a level that BTC/USD never breaches, is currently located at $15,600. Analyst PlanB says these are more than just numbers.
He says the relationship between the realized value – an expression of the market cap based on the last price each Bitcoin moved – and the 200WMA shows the potential for market growth.
BTC not getting popular, according to Google
Data from Google Trends shows that “Bitcoin” is not as popular as it was in mid-July when BTC/USD was trading at just over $30,000. But, according to analyst William Clemente, such conditions are perfect for BTC price action to get a surprise jolt. Investor sentiment is also ideally placed at the moment as the Crypto Fear and Greed Index is in “neutral” territory.
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