Analyst William Suberg called Five factors that can affect the cryptocurrency market during this week, while Bitcoin remains locked between the levels of $ 9,000 and $ 10,000.
Optimism returns to stock market
Following Friday’s downtrend, stock market futures are up despite continued concerns about the coronavirus pandemic. Bitcoin on Sunday after a fluctuation period of about $ 9,000 fell below this level, but was able to recover quickly.
Further weakness of the S&P 500 index, with which bitcoin has been correlated by 95% over the past months, could have a negative impact on the short-term prospects of the cryptocurrency, analyst Ton Weiss believes.
At the same time, analyst Michael van de Poppe finds reason for optimism, noting that even at a recent low of about $ 8,900, the increase in the price of bitcoin since March is 140%. Since the beginning of the second quarter, bitcoin has significantly surpassed the stock market in terms of investment profitability with a value above 40%.
Mining difficulty may fall
According to forecasts, the complexity of mining Bitcoin, the next recount of which will take place in about 30 hours, may fall. In the previous recount two weeks ago, the value increased by 15%.
However, the bitcoin hash is not constant. The seven-day average fell to 105 EH / s last week, but recovered to 115 EH / s by yesterday.
Small gap in the futures market
A break in trading on the Chicago Mercantile Exchange (CME) on the weekend and a change in the price of bitcoin on the spot market at that time led to the formation of a gap on the futures chart or a gap between $ 9,180 and $ 9,250. The last value is $ 100 higher than the current bitcoin price. Typically, such gaps tend to close, which traders use unsuccessfully to predict market behavior.
On Friday, an expiration of $ 1 billion in options for bitcoin took place, but, contrary to the expectations of market participants, this event did not lead to a noticeable increase in volatility.
Investors driven by fear
The mood of market participants has changed slightly compared to the previous week. According to the index of greed and fear, fear prevails among them.
Last week, the metric experienced a short climb of 9 points under the influence of the news that PayPal may add the possibility of direct purchase of cryptocurrencies.
Bitcoin exchange balances are at a 13-month low, which indicates a lack of interest among investors in the sale of cryptocurrencies.
Miners cut sales
The actions of Bitcoin miners remain in the spotlight after several periods of active sales in June. According to CryptoQuant, the outflow of assets from mining pools slowed by the end of last week after the June 24 jump.
Presumably, two Chinese mining pools could be behind the sales, which brought out 7,000 BTC for liquidation in the OTC market. CryptoQuant also notes that on June 26 there was an outflow of funds from smaller pools.
The need to judiciously distribute their resources gained new relevance for miners after the May halving when the value of the rewards they collected for the blocks was halved.