Bitcoin (BTC) begins another week in an upbeat mood as hurdles affect price developments.

The Cointelegraph offers five factors that determine where BTC / USD could be headed in the coming days and what traders should look for.

All eyes are on the federal and US inflation
Stocks hit records last week when the S&P 500 reached an all-time high. Despite its overall impact on Bitcoin, movements in the macro markets can still convert to cryptocurrency.

The bullish momentum continued on Monday, with equity futures rallying but danger is being felt about the upcoming US Federal Reserve speech.

Markets were awaiting inflation news, which was rumored to be as high as 4%.

According to analysts, this would be an ideal storm for creating safe havens in an environment where the US dollar index has already fallen to its lowest level in two years and the market is flooded with excess liquidity due to quantitative easing.

The news will come from Federal Reserve Chairman Jerome Powell during his annual economic symposium on Thursday in Jackson Hole, Wyoming.

“More clarity is undoubtedly the goal of this week’s Jackson Hole symposium,” said Ben Emmons of macro analysis firm Medley Global Advisors in Bloomberg on Monday.

Meanwhile, US futures rose, while Asia took a bullish tone thanks to Washington’s reassuring stance not to block the Chinese social network WeChat. As a result, the stake in Tencent’s owner increased by more than 4%.

Analyst sees BTC price at $ 9,600 as “buy on dip”
For short periods of time, Bitcoin delighted analysts at the start of the week. Michael Van DePope, an analyst at Cointelegraph Markets, was now less likely to move lower after Bitcoin / USD avoided retest levels below $ 11,500 on Sunday evening.

In a transaction analysis video on Sunday, Van de Pope added that in the event of a crash, the expected “buy on dip” level would still fall below $ 10,000.

He summed up “the real level that I look at when buying lows when we break between $ 9,600 and $ 9,900.”

Concerns about breaking under five numbers have become rare among commentators, while Van de Pope largely dismissed rumors of a drop below $ 8,000.

The last time Bitcoin was trading for less than $ 10,000 was in late July.

Bitcoin difficulty has reached a new record
A mixed bag of Bitcoin fundamentals corrected network issues up 3% to all-time highs, but the hash rate trend was lower.

According to data from monitoring resource, the difficulty level rose 3.6% to 18.17 trillion on Monday.

The new record indicates that miners’ participation in the network is stronger than ever, and the competition is reflected in the exhaustion of equation solving on the blockchain.

The difficulty level adapts automatically and is a key feature of Bitcoin as self-regulating hard money. The outcome remains regardless of how high or low the difficulty level is.

It is estimated that the hash rate has decreased by around 8% in the past seven days and is currently at 119 hashs per second (EH / s).

Given the imprecision of hash rate measurements, it is possible that after adjusting for difficulty the figure will return to normal and continue the broad upward trend, because shortly after blocking support in May, miners’ incomes fell 50% overnight.

$ 730 million options expire
Cryptocurrency derivatives may be in the spotlight again this week as the end of the month approaches and settlements close.

Bitcoin options valued at 62,000 BTC ($ 730 million) expire on August 28, in celebration of the month-end promo that begins in June.

Traditionally, settlement points have put downward pressure on BTC’s price, but as Cointelegraph reported, the nearly $ 1 billion spill in June turned out to be no market event.

However, with each passing week, futures are reaching a wider audience, as evidenced by Grayscale’s record streams in August.

At the same time, chain analytics supplier Skew reported record short positions for CME Group Bitcoin futures, which were described as “highly prospective” due to the profitability of so-called “cash and mobile” transactions.

This is done as a balance between the futures price and the spot rate of Bitcoin.

Source: CoinTelegraph