On July 22 Is Expected A Bitcoin Breakout. Here Are The 5 Things To Watch For BTC Price This Week
The current news is about bitcoin break out. What do analysts prophesy about the price of Bitcoin? Read along for all the details.
The Price Action Of Bitcoin
As price action continues to preserve $9,000 support, analysts predict that the end of Bitcoin’s compression cycle will hit within days.
Beginning a new week, the price of Bitcoin ranging north of $9,000 as it awaits cues from macro markets, and in the store what could be the coming days?
Here we take a look at the major factors that could thereby impact BTC’s price this week.
Here, BTC Compression Nears Its End
Leading a somewhat uneventful start to the week’s trading are equities with major stocks’ futures slightly down the day by a maximum of 0.6% at press time.
With a quiet weekend, Bitcoin comes with volatility remaining negligible and a narrow trading corridor continuing to characterise price performance.
Hovering at around $9,180 the BTC/USD on Monday has hit local highs of $ 9,226 earlier with the highest ever since July 15.
Coronavirus sentiment and the reactions associated with remedial measures from governments and central banks dictating macro action, it has become a standard in recent weeks as Bitcoin remains susceptible to the copycat moves.
Given the compression in BTC/USD over the past several weeks, the calm reigning before the opening bell on Wall Street gives room for maneuver appearing limited.
The current compression cycle has shown little sign of breaking this month as a cycle of higher lows and lower highs. As reported the status quo is however ripe for change as it should happen this week according to analysts.
As the co-founder of crypto hedge fund Morgan Creek Digital, Jason Williams tweeted on Sunday that it feels like a little World Cup of sorts as bitcoin could break out on or about the 22nd.
CZ: Better Don’t Take Safe-Haven Status “Too Literally”
As the CEO of cryptocurrency exchange Binance states, investors should not thereby treat Bitcoin as one of the safe haven that is too literally within the current market.
Changpeng Zhao known as CZ in the cryptocurrency circles speaking to Bloomberg on July 20 cautioned against considering BTC/USD as having a particular relationship to stocks.
He further mentioned in the network that he thinks people should not take literally the meaning of safe-haven assets as there are always multiple factors affecting the price of an asset.
Similar to a float is Bitcoin imagined as in case the Titanic is sinking beside it, and there is a rope tying the float to the Titanic the float, therefore, sinks with Titanic even if the float does have the floating properties and not just able to sustain that kind of load.
Quant analysts have therefore suggested that Bitcoin is 95% correlated to the S&P 500
Adding to it is CZ as the flat inflation and the impact on investor holdings would then ultimately increase Bitcoin’s safe haven profile over time.
Analyst: And Gold May Keep Pumping
Over the weekend on the topic of safe havens, the attention stayed focused on gold as the result was similarly a result of the coronavirus fallout as the precious metal is now up 19% year to date.
With an appetite existing among investors for an exit from fiat, that has been tarnished by the central bank money printing and lower interest rates, even in the eyes of mainstream media.
Gold may have even more room for growth than its current nine-year highs, according to Bank of America Securities commodities strategist Michael Widmer.
He further told to CNBC that we need quite a little bit more visibility before gold prices start peaking as the data from the on-chain monitoring resource Skew confirms that meanwhile, Bitcoin has firmly beaten gold’s year-to-date gains: 27.7% versus 18.4%
Crypto Futures That Show Signs Of Life
Contrasting with a tailing off in activity for Bitcoin, Binance further reported a significant growth in the futures products focused on altcoins.
The exchange’s altcoin perpetual futures volume in July alone grew 150% to $ 5.1 billion from $2 billion as the daily volume on altcoin futures hit $ 2 billion.
In the wake of uninspiring Bitcoin price action, it is said in an accompanying blog post that it underscores investor attention concentrating on the altcoin markets.
The blog post later stated that the unusual stagnation in the price of Bitcoin has shifted investors’ appetite towards the process of altcoins surging to new all-time highs.
As seen by Bitcoin’s declining market capitalisation dominance this explosion in Altcoin demand has ushered in an altcoin season
Staying At All-Time Highs Are The Bitcoin Fundamentals
Open to debate however is which direction a Bitcoin price breakout could take as analysis suggests to be pulling back the 11% in line with support as part of the current descending price channel.
Remaining conspicuously strong at the same time is Bitcoin network fundamentals and miner sentiment as the difficult forecast for another 6.3% rise which was in seven days constituting the highest level ever. Similarly, the average hash rate remains near the historical all-time highs.
While hash rate is a rough measure of the computing power dedicated to mining, the difficulty refers to the effort required solving equations on the Bitcoin blockchain.
The consistent upward growth has therefore previously resulted in a knock-on effect for price action as both metrics only give an impression of network health.
Max Keiser the RT host continues to be highly bullish on BTC/USD forecasting a $ 500,000 price target who is chief among the proponents of the theory that price follows hash rate.