Bitcoin (BTC) starts a new week with a price back to $ 60,000 as the shock of the price accident ends at the end of the week.

After falling to just $ 52,000 in sales, Bitcoin has spent the last two days slowly recovering from the losses. What’s next?

Cointelegraph offers five factors to consider when starting a new trading week and cryptocurrency holders around the world are healing the wounds.

Short-term stocks prepare “just up”
The overall picture in Asia and Europe is fairly stable, with US markets not yet open.

Open to investors, the picture was mixed, but volatility was generally absent, and only oil showed more visible signs of weakness.

As such, the stock movement is expected to have a minimal impact on Bitcoin – these expectations will continue to rise to record levels in the coming weeks.

Russell Chessler, head of investment and capital markets at Australia’s Cryptocurrency Friendly Investment Manager VanEck, got this feeling in a post quoted by Bloomberg.

“Our current view is that with low short-term interest rates in the medium term and the expectation that earnings will continue to rise, it is unlikely that higher long-term interest rates will reduce the stock market,” he said. wrote.

Fears of coronavirus persist despite continued stock flows, with more official cases reported last week than ever before in the world.

Economic responses continue to vary, with recent attempts by countries to tackle the eruption to characterize a patchwork of openings and closures.

Bitcoin recovers after falling to $ 52,000
In Bitcoin circles, the main topic of conversation is of course the weekend’s events, which saw a fantastic sales series, with the result that BTC / USD fell by $ 7000 in minutes.

Bouncing off just over $ 52,000, this year the crash repeated several similar events, and Bitcoin was able to recover around 50% of its lost positions in a matter of hours.

1 hour candlestick chart BTC / USD (Bitstamp). Source: TradingView
However, the answers were divided between those who consider volatility as “normal” and more conservative voices that take time on the latest bullish wave.

As the Cointelegraph reported, suspicions included power outages in China that hit retail prices, as well as rumors of US lawsuits against unnamed financial institutions related to money laundering.

In his analysis of what happened, renowned statistician Willie Wu highlighted both China and the volatile actions of futures investors that contributed to losses.

He told his Twitter followers: “We just saw the biggest one-day decline in mining hash since November 2017. The hash rate on the network has dropped significantly by half, which has led to a fall in the BTC price due to of failure. . ”

In a sign that a new sustained rally could take place in the future, Wu repeated the “reset” of the scale in the chain, the Depleted Transaction Output Ratio (SOPR), indicating that long-term investors will soon stop selling altogether.

“The SOPR sensor on the circuit is almost completely reset.” He added: “Buying is a classic for price reduction.”

“Simply put, investor profits are complete in the long run, and offer very little opportunity to sell unless investors are willing to sell at a loss on the entry price. It will hardly happen in a beef market. ”
The basics point to
It’s not just SOPR – a number of Bitcoin network indicators and fundamentals support a bullish case, although BTC / USD remains even below the February high of $ 58,300.

It is especially important for Wu and others to channel money to investors who have a habit of inflating rather than selling – another classic feature of Bitcoin’s growth in recent months.

The Bitcoin liquid supply chart shows the transitions to strong hands. Source: Willie Wu / Twitter
“People with serious and strong hands buy this flop.” Analyst William Clemente added on Sunday that more than 200,000 bitcoins have become illiquid in the last 24 hours, a record of 3 years.

“This illiquid increase in supply is not limited to buyers with no sales history. Rather, it is a partial build-up 5-6 months ago, as these portfolios have just crossed the “illiquid” threshold for this scale. …
Finally, around 13.5% of the total Bitcoin assets were over $ 53,000, which Wu said confirms its position as a trillion dollar asset. Bitcoin’s market value is around $ 53,800 and stands at $ 1 trillion.

Source: CoinTelegraph

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