Bitcoin network fundamentals are describing the mass migration underway this month all the while when BTC price action has been making profits. Bitcoin (BTC) started its week with a key weekly close but the question remains whether or not it can go higher.
Bitcoin network fundamentals are describing the mass migration underway this month all the while when BTC price action has been making profits. Bitcoin (BTC) started its week with a key weekly close but the question remains whether or not it can go higher. This weekend was a bit elusive with a retest of $30,000 support, BTC/USD is on top again with $35,000. Even with negative press around, FUD and miner shake-up from China, the BTC price action proves that the largest cryptocurrency still has some fight left in it. However, there are persisting chances for a downfall and by no means the market is somewhat convinced that the market has truly fall down. There are some factors which are considered crucial to know where bitcoin is headed to in the next few days.
Its stocks instead of the U.S Dollar which is acting as the front liner this week, as the S&P 500 just saw the best week since February. There have been concerns since the federal reserve rates increased, equities rallied throughout the entire last week. While the S&P 500 was reaching at an all-time high rate with a risk of a change-up which cannot be dismissed says the commentators. “The risk of higher bond yields-and potentially a pull back in equities due to ongoing strong U.S economic data remains,” David Bassanese, Chief economist at Australian funds provider BetaShares, wrote in a note given by Bloomberg. “So far at least, long-term bond yields remain contained and equities more focused on the V-shaped rebound in economic growth and corporate earnings”.
Even with the economic difficulties hanging above our heads caused by the Covid-19 virus, Bitcoin proponents have been foreseeing a day of reckoning. Robert Kiyosaki is the chief among them and also the author of the famous book, “Rich Dad Poor Dad,” who recently talked about his warnings over global markets. “The best time to prepare for a crash Is before the crash. The biggest crash in world history is coming.” On Sunday bitcoin spot price received a happy ending with the weekend being slightly in danger of materializing below key levels which were saved for future profit. During the event BTC/USD risen above expectations, increased by $2000 in hours overnight to see local highs of $32,250 on Bitstamp and a weekly close above $34,000. This put the pairs on spotlight and is “fantastic for bull-side momentum,” analyst Rekt Capital said earlier way before the data was released.
There is another popular social media trader known as the overnight rise “significant” and slightly focused on $35,000 resistance all connected with Bitcoin’s rising relative strength index (RSI) to get probable oversold or overbought levels. Although some gains would be focused on correcting the so-called “death cross” which happened previously where the 50-day moving average crossed over the 200-day moving average with a commendable speed which also achieved considerable press attention. There is bad news for people who appreciated bitcoin’s biggest difficulty increase ever since 2014. As the network fundamentals are worried in the wake of China’s mining disaster a difficulty adjustment this week will show how largely the recent events have affected everything. A recent estimate shows the difficulty will low down by an estimated 23.24% which is something that has never happened before in bitcoin’s entire lifetime. This earth-shattering downward adjustment is a mass off lining of Chinese miners but for some others it is somewhat like relocating overseas which seems to be a bit positive.
These adjustments are what keeps bitcoin mining competitive while saving and securing network security. The lesser the difficulty the more miners will join by making the entire process more affordable. Which would result in higher competition followed by larger downturns which is then backed up by increases. “Mining hashrate could decline significantly, but difficulty would just adjust downward the network would clear blocks, and the remaining miners would become much more profitable, having to sell fewer coins, spurring the price upward, incentivizing more mining,” said Saifedean Ammous, author of “The Bitcoin standard”.
Based on the report by MiningPoolStats, the preferred data of Blockstream CEO Adam Back, hash rate at the present stands at around 83 exhashes per second (EH/s) down from a crest of 168 EH/s. El Salvador has set a cause and effect with its law to make Bitcoin legal tender which would enter into force during September. Ricardo Salinas Pliego is the third-richest man in Mexico based on the Forbes ranking repeatedly said that bitcoin is the “new gold” this weekend by sharing details about his recent adoption. “Bitcoin is a good way to diversify your investment portfolio and I think that any investor should start studying cryptocurrencies and their future,” he said. “At Banco Azteca we are working to bring them to our clients and continue to promote freedom.” He added.