Record BTC Weekly Close, Ethereum All Time High: 5 Things To See In Bitcoin This Week
Bitcoin (BTC) is back with a vengeance this week as a new day’s trading begins with a new attack on $ 60,000.
After a weekend in which the largest cryptocurrency avoided a correction, Monday looks optimistic – but what could affect price developments in the short term?
Cointelegraph offers five factors for Bitcoin traders to watch out for as the market nears historical highs.
Stocks reflect coronavirus chaos
The macro image is a story of two coronavirus moods this week.
With the UK exiting lockdown, the mood among business executives has risen to highs, suggesting that optimism still reigns in the West, still haunted by coronavirus restrictions.
The picture is tarnished by the key players in the eurozone, France and Germany, where the picture is much less rosy, while the United States is also a patchwork of politics when it comes to the virus.
As a result, stocks are broadly flat at the start of the week, while an impending lockout elsewhere is causing sentiment to subside in India, Monday’s main downtrend.
The controversial moves from Delhi “are worrying the markets and no one is sure if lockdowns will help bring cases under control,” Deepak Jasani, head of retail research at HDFC Securities, told Bloomberg.
“The incentive for traders to try demersal fish at this point is limited.”
The market commentator Holger Zschaepitz, meanwhile, described a “busy” week for stocks, in which he noted new highs for mainstream risk-weighted assets on Friday – which Bitcoin increasingly includes.
Outbreak on the cards for Bitcoin
The current signal within Bitcoin is finally tied to the spot market.
On Monday, $ 60,000 is back after BTC / USD surpassed significant price levels early on Saturday.
The weekend saw the largest weekly close in Bitcoin history at around $ 60,000.
BTC / USD 1 week candle chart (Bitstamp). Source: trade view
At the time of writing, the BTC / USD pair is again targeting $ 61,000, less than $ 1,000 from all-time highs. Expectations among analysts that Bitcoin will break new ground are predictably high.
“Another attempt to break out,” summarized the on-chain analysis service Skew.
A look at the order book activity on the major exchange, Binance, shows that sellers are queuing at $ 60,500, $ 61,500 and $ 62,000 before orders dry up. On the buy side, $ 59,000, $ 58,000, and $ 57,000 remain strong areas of interest.
The resulting limitation in volatility, with Bitcoin sandwiched between major buying and selling interests, is a classic signal for the final stages of price consolidation. After 50 days, Bitcoin has now been in such a consolidation system since it hit USD 58,300 for the first time in the last week of February.
The latest move is surprising to popular Twitter trader Crypto Ed, as only last week more bearish signals filled the landscape with the low timeframe. Sunday also indicated an in-depth decline.
“Surprising PA this morning that invalidates that idea,” he commented.
Coinbase highlights booming on-chain indicators
Cointelegraph has reported on the strength of Bitcoin on-chain indicators many times this year, consistently calling for the bull market to continue throughout 2021.
Despite the consolidation over the past few weeks, nothing has changed in the fundamentals, which shows that Bitcoin is not yet near the bull cycle peak, such as it was in December 2017.
So there is no reason to be bearish at $ 60,000 for the Byzantine General Twitter account, which did a full rundown of the indicator data this weekend.
“Summary: – derivatives a bit overheated – constant strong spot bid – institutional flow – no peak euphoria in retail yet – mainstream adoption is getting very real – Coinbase IPO could be a volatility catalyst,” he concluded.
Much of these points relate to material already covered by Cointelegraph, while Coinbase’s upcoming direct listing on Nasdaq (Wednesday) this week may provide a rare counterpoint narrative.
On the trading day in particular, there can often be a sell-off of companies going public, and as a result, there may be temporary volatility on that Wednesday.
“Coinbase’s Google search suggests that the norms have not yet caught on,” added the Byzantine general.
“It only seems like crypto nerds are aware of this, and even among us there is disagreement about what this event entails.”BTC / USD performance versus previous cycles. Source: Ecoinometrics / Twitter
Ether sees a new historic high in the altcoin wave
It’s not just a Bitcoin shoot for the moon on Monday – altcoins are breaking records, suggesting that interest in cryptocurrencies is broader.
These are led by Ether (ETH), the largest altcoin by market cap, which hit new all-time highs that day and is currently trading at $ 2,190.
ETH / USD 1-day candle chart (Bitstamp). Source: trade view
ETH / USD is up 7% over the past week, often outperforming Bitcoin itself.
However, that performance pales in comparison to other big altcoins, particularly Binance Coin (BNB), which is up 70% in seven days and is approaching $ 600.
“I think the BNB goes to $ 600. Pennant break. Always a long break. Price discovery. Much to like. Looks crazy for the $ BTC pair too, ”commented analyst Scott Melker on the action last weekend in a timely forecast.
As Cointelegraph reported, the “old season 2.0” is expected to peak in summer and reach previously unknown proportions. The analyst Filbfilb, co-founder of the trading suite DecenTrader, believes that the age of the altcoins is already here.
Coinbase outflows amplify the institutional buy-in narrative
Finally, another event where Coinbase was in the spotlight this time and which involved users rather than the company itself.
There was a sudden surge in outflows from Coinbase’s books of $ 750 million on Sunday, according to on-chain monitoring resource Glassnode.
While such an event is not a clear indication of a larger buy-in, it would not be uncommon in the current environment, but would be significant in terms of size.
Institutional investors continue to buy and promote Bitcoin as an investment, while rumors rise of better-known names considering an allocation.
Coinbase flow chart. Source: Glassnode