The new week for Bitcoin starts with the fall in the U.S. Dollar and rising stocks- despite trading above $16,000. This interesting phenomena has given rise to investors looking at several factors which could possibly shape the way Bitcoin is going to move in the upcoming days.
Bitcoin Stocks near all-time highs while U.S. Dollar sinks
The present week’s movement on a macro scale feels quite different than the previous week- for, most of the bitcoin stocks are gaining after having been boosted through a trade deal in Asia. And interestingly, amidst all this, the U.S. Dollar is still losing its position. According to a November 16 data, the currency index for the U.S. Dollar has declined quite a lot over the last week- from 93.2 to 92.58. Usually, Bitcoin is inversely proportional to the Currency index, but even if this relationship turns out to be extremely subtle and covert, any large moves in either way could signify major changes in both the BTC and the U.S. Dollar.
On Monday, Asian stocks had the lead, with around 15 countries signing onto the long-awaited Regional Comprehensive Economic Partnership- which has been installed to reduce tariffs in trade to around 92% between them. This mood has somehow leaked over to the US and European futures, as markets are gearing up to strike record highs all over the board. And, if one were to be observing this, they would have noticed a curiously similar situation- for markets are again coming back to the forefront after crashing and rebounding earlier. With coronavirus restrictions still coming up, markets are buoyant once again.
Bitcoin in 3rd highest weekly close
The price action that took place this weekend has allowed Bitcoin to initiate its third best week in all of its history. It has currently sealed a weekly close that is well above the $15,890 area. For the chart of this week, it is obvious that Bitcoin has consistently beat its previous performance to close its week on a Sunday.
Institutions aren’t selling
Most publishing time-levels are circling $16,250 before the opening of Wall Street. And in this event, around $16,000 was returned. Most of the institutional investors have stepped away from retail- and have remained conspicuously long Bitcoins- which can be proven through capital inflows- as stated by Willy Woo.
Fundamentals trend upward
Despite several ongoing warnings of a major dip in its price, there have been signs of major changes in the network fundamentals of Bitcoin. If reports from Monday are to be believed, then the mining difficulty of Bitcoin has been set to increase by around 4%. This has led to an increased competition amongst Bitcoin miners, which has since followed a steep decline in mining difficulty.
How much extreme greed is possible?
The widespread sentiment amongst investors is that things aren’t really looking good for those wishing to avoid a Bitcoin price dip.
According to analysts, however, the current year has set up quite a sustainable growth for the price of Bitcoin.