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Top 5 Bitcoin Traders to Follow This Week


The price of Bitcoin has been strongly supported at 16,000, despite rising and falling sentiment in the market and speculation about breaking the historical price record.

To Report Coin Telegraph, Bitcoin while fresh week [میلادی] Stock markets have started to jump and the dollar index is falling. But the main question is what will be the next move in the bitcoin market? Here are five factors that affect the price.

Stock market boom and falling dollar index

The macroeconomic situation this week has major differences from last week; Stock markets have boomed due to the trade agreement of powerful economies in Asia, while the dollar index is declining.

Recent data show that the US dollar index (DXY), which reached 93.2 after the US election, is in the range of 92.58. From the past until now, the price of bitcoin and the dollar index have had opposite trends. This effect has been diminishing for some time, but any fluctuations in the dollar index also affect the price of the king of digital currencies.

Dollar price index chart
Dollar price index chart

On Monday, we witnessed the signing of the “Comprehensive Economic Cooperation” agreement. Fifteen countries have signed this agreement, which is the largest trade agreement in the world. Under the agreement, the trade tax on the 15 countries will be reduced to 92 percent. The deal had a major impact on Asian stock markets.

This effect was also evident in the European and American stock markets, which are reaching their historic highs. It can be said that this situation is very similar to the situation in March (March 1998). Stock markets fell sharply at the time, but recovered quickly. Now, however, stock markets are still booming, despite the tightening of restrictions on the spread of the corona virus.

Reports indicate that central banks’ entry into and support of stock markets has raised doubts about the health of these jumps.

Major investor Dan Tapiero believes that such economic policies could lead to the further growth of safe havens such as Bitcoin. He tweeted:

Expect more liquidity from central banks. As caution increases, economic activity declines in the short term. The condition of the corona is unknown. Markets are supported and the bitcoin and gold markets will benefit.

The third most powerful week in the history of Bitcoin

Bitcoin price fluctuations on Saturdays and Sundays provided the platform for the king of digital currencies to record its third good weekly performance. Bitcoin weekly candle closed in the area of ​​15,890, which is the third highest weekly closing price.

Last week, Bitcoin hit a significant weekly price, but last week’s price broke the previous record and is now the third weekly closing price in history. There are currently only two areas where the bitcoin price in the weekly timeframe has not yet been broken. Many experts do not know if this will happen in the future.

“Digital currency analyst Michael ven de Poppe said on Sunday, when the price of bitcoin was around $ 15,850,” he said.

In general, the market is in a multi-way. Breaking the support of 15,500 suggests that we will see a price correction in the market and the price of Bitcoin will probably reach $ 13,000 or lower.

Bitcoin price chart
Bitcoin price chart

Tone Veys, a leading market analyst, has previously said he expects the price of bitcoin to reach $ 17,000 or $ 18,000. He said about this:

I do not think that our current jump to the historical price peak [بیت کوین] To win. I believe that the price peak will occur in late November (December) or the second half of November and will continue until early December.

Institutional investors’ resistance to sales

Bitcoin is currently recovering at $ 16,250. Aside from micro-investors, institutional investors still have a bullish outlook on the future price of Bitcoin. Leading analyst Willy Woo, referring to the flow of capital from these investors, writes:

Conditions are such as to prevent downtrends (relative power index (RSI) divergence in 4-hour timeframe and TD9 شاخص index in 8-hour timeframe).

Intra-chain fundamental factors are bullish in the short and medium term. More currencies have left the exchanges and more users have entered these exchanges; The current buying scenario is on the floor!

It is worth noting that the outflow of currencies from exchange offices is a factor that was also mentioned in the last jump of $ 11,000. In this case, instead of trading their currencies, users transfer them to their wallets for long-term and medium-term storage.

Fundamental factors

Despite warnings of a drop in the price of bitcoin, fundamental factors continue to point the way.

Monday’s data from Bitcom.com shows that the next network upgrade will increase network hardness by 4%. However, during the previous hardness correction, we saw a sharp decrease in hardness. The correction two weeks ago reduced the network stiffness by 16 percent, the second largest stiffness correction in the Bitcoin network.

According to many analysts, the complexity of the Bitcoin network is one of the most important technical features of this digital currency. The combination of bitcoin moving and difficult corrections in the long run has left the bitcoin network completely without the need for outside help.

Bitcoin Network Hardness Chart
Bitcoin Network Hardness Chart

Preston Pysh, a well-known figure in the field of digital currencies, tweeted:

Network hardness correction provides a platform where only a certain amount of currency enters the network each day. The effect of this on price is interesting; Because it prevents Howing’s premature occurrence.

Datcom bit data also shows that bitcoin network awareness is increasing. Bitcoin network hash rate indicates the processing power that miners place on the network.

How far does greed go?

One of the indicators that estimates the sentiment in the market indicates that prices are likely to fall.

The index of investor fear and greed shows that the probability of price correction is very high. This index uses various factors to estimate the prevailing emotions among investors. When this index shows a number of 90 or higher, it is said to be in the range of “intense greed”. This index has 100 units of measurement.

Fear and taste index
Fear and taste index

The interesting thing is that only during the upward jump of last year, this index had reached the range of 90. It should not be forgotten that experts believe that the current price jump is more natural than previous jumps.

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