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August 31, 2021 @ 10:39 +03:00
Dollar comedown as stocks set for even higher highs
Stocks hit fresh all-time highs last week on the back of comments from Fed Chair Jerome Powell. Correspondingly, the strength of the U.S. dollar took a hit, and the U.S. dollar currency index (DXY) began a multi-day downtrend. Such conditions tend to be favorable for Bitcoin, and a lack of headwinds coming from the macro-environment could yet give bulls a helping hand.
Resistance keeps Bitcoin bulls in check
Saturday and Sunday weren’t exactly boring for Bitcoin traders — two run-ups above $49,000 gave them plenty of hope for the “big showdown” against the $50,000 barrier. In the end, however, both attempts failed below $49,500, and BTC/USD remained in a narrow range in the upper $40,000 zone. On Monday, the picture remains the same, with $47,000 now back on the table for support.
Hash rate retests April dip zone
It’s a situation that could yet play out elsewhere in Bitcoin beyond spot price — fundamentals are also slowing their rapid growth. After an impressive 13.2% upward difficulty adjustment a week ago, Bitcoin is now looking at the next being all but flat — less than 1% is currently estimated to be added. This may yet turn negative, marking a pause for thought among miners after a mass return to the network over recent weeks.
Sizing up the chances of $50,000
What are the odds that a $50,000 onslaught by bulls becomes the defining market feature this week? As Cointelegraph reported, the upcoming U.S. jobs data release on Friday may already seal the deadline for a BTC comeback. The ingredients to make it happen are already broadly in place — neutral funding rates across trading platforms and an increasing supply of stablecoins, this topping $19 billion.
Eerie calm continues for sentiment
The idea that Bitcoin is facing its “final hurdle” before challenging all-time highs is arguably already visible in trader sentiment. After BTC/USD added 60% in weeks, sentiment likewise went from “extreme fear” to “extreme greed” — as per the Crypto Fear & Greed Index. Now, as the pace of gains has slowed due to $50,000 resistance, so too has “extreme” feeling given way to a more moderate “greed” rating on the Index.
Is the time right for $50K BTC? 5 things to watch in Bitcoin this week, Cointelegraph, Aug 31