Bitcoin (BTC) falls in a new trading week – there were levels below the $ 33,000 test on Monday, and the bulls struggled.

What could have happened then? Since short-term bullish votes are few, the cryptocurrency seems to be of little interest to investors at the moment.

Amid macroeconomic uncertainty, low volumes and claims of a top beef market, Bitcoin still has a lot to do to convince the market that good times are not yet coming.

Cointelegraph offers five things to consider when planning what might happen to BTC / USD in the next few days.

Fed’s highlight … again
This week, the focus for investors across the economy is on the US Federal Reserve.

Following comments from Chairman of the Board Jerome Powell last week, the US dollar rose significantly, while the shares then sold strongly as market participants changed. For example, the Dow Jones fell 3.5% in one day – the worst level since October last year.

Volatility arose when Powell indicated that the Fed could soon begin to reduce market intervention. This became standard practice as part of his response to the coronavirus and the subsequent economic closure.

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Thus, the decline in purchases, which CNBC currently has around $ 120 billion a month, is a remarkable turning point.

Powell will speak again on Tuesday, this time before the Senate, and believes he will provide further information about the news he made known last week.

“I absolutely wonder what Powell has to say,” Peter Bockfar, chief investment officer at Bleakley Global Advisors, said Friday.

“Now they want to give us all the exact details of what was in the statement and what Powell said.”
Should there be any surprises, the instability in recent days may persist. Good news for the dollar, as the Cointelegraph often notes, tends to be bad news for bitcoin’s price movement.

“When I woke up, I did not get any positive feedback from the BTC chart,” the well-known trader Crypto Ed summed up earlier this week.

“One of the reasons is the sudden rise in DXY since the IMO last week.”
He added that the dollar could continue to “push” Bitcoin to the US Dollar Currency Index (DXY) reaching around 94 from the current level of 92.2.

US Dollar Index (DXY), 1-day candlestick chart. Source: TradingView
Chinese bank removes anti-crypto printing in minutes
This is not the best look at bitcoin spot price dynamics at the beginning of the week – but who’s to blame?

Beyond the Federal Reserve, another economy is once again exerting its influence on the crypto markets, this time more directly: China.

In a statement, the Agricultural Bank of China, the country’s third-largest lender, explicitly stated that its services should not be used for cryptocurrency-related transactions.

“The Agricultural Bank of China has announced that it will not participate in virtual currency transactions and related activities,” said a news source targeting China 8btc, translating the original document to social media users.

“Customer accounts involved in such activities will be closed and customer relationships terminated.”
The result of the publication was immediately recognized – Bitcoin fell over $ 1000 in a few minutes before accumulating to $ 33,000.

This behavior is not surprising at all, but patience is now running out due to the rapid reaction to China. The latest episode turned out to be an example – the bank deleted the statement shortly after it was published, but the damage was done.

Overall, nothing has fundamentally changed in the Chinese government’s stance on bitcoin since the controversial trade ban took effect in September 2017.

“Half of the Bitcoin network is currently closed by China. Charles Edwards, CEO of Asset Management Company Capriol, noted in a series of tweets that the mining campaign was a former source of price pressure in China.

Others argued that Bitcoin gained new opportunities thanks to the punitive actions of both banks and governments – mining will move elsewhere, and the network will flourish as a result of the use of friendlier and more reliable jurisdictions.

The China-dominated era of bitcoin mining may come to an end Alex Gladstein, Strategy Director of the Human Rights Foundation, commented on a letter of resignation from a Sichuan miner.

“It would be a source of rich irony for future historians to learn that a free, open and decentralized global currency network in the early years of its existence was protected by humans under conditions

Source: CoinTelegraph

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