Bitcoin (BTC) is still starting the new week with $ 13,000 and is completely worried about the problems in the global economy – what does the future hold for us?

Cointelegraph is looking at potential Bitcoin issues in the next few days.

Banks will apply for PayPal BTC accreditation
Last week’s announcement that the payment giant PayPal will support Bitcoin continues to affect the price action of the three altcoins from 2021.

When the news came last week, Bitcoin suddenly jumped from $ 12,500 to $ 13,200 and later hit $ 13,370 over the weekend.

The reaction from bitcoin veterans has been mixed, with some consumers warning that PayPal is leaving them with the cryptocurrency, as it is already known that restrictions apply.

However, there is still agreement that Bitcoin has overcome a major obstacle to adoption. Even David Marcus, co-author of Facebook’s Libra digital currency scheme, which PayPal had previously abandoned, was optimistic.

In a tweet on October 25, he wrote: “It is great to see more and more major players in the financial industry participating in the victory over cryptocurrency.”

“Several banks now want to support #BTC and stablecoins following the PayPal announcement this week. We are on the verge of change. ”
His words reflect the expectations of Virgin Galactic President Chamat Palihapitiya, who similarly said on Thursday that bitcoin is no longer “optional” for large organizations.

As Cointelegraph reported, several companies have added bitcoin to their reserves in recent weeks and months in a concerted effort to reduce fiat currency inflation exposure.

Bitcoin witnesses 6th best weekly blackout in history
For $ 13,070, Bitcoin closed the second largest weekly close since January 2018 and the sixth largest ever on Sunday.

Technically, this is no achievement – BTC / USD broke through the long-term weekly resistance of $ 11,900 and maintained these higher levels.

The $ 12,000 recovery and retention has been conspicuously absent even in Bitcoin’s most successful period since the end of the bull market in late 2017 when it hit $ 20,000.

Both in 2019 and earlier in 2020, short gains of more than $ 12,000 ended in recession and returned to lower levels in the weekly time frame.

The end of the week marks another turning point for Bitcoin, and analysts hope its significance is real.

Others were more reluctant ahead of the event: Cointelegraph Markets analyst Michael Van de Pope was looking forward to a short-term departure.

Van de Poppe said a little less than $ 11,500 is needed to maintain the current rate.

“I think this is a likely scenario, and I do not yet expect a clear breach of over $ 14,000 dollars,” he wrote on Sunday.

“Test the previous resistance area again to accelerate to the next high of around $ 17,000 early next year.”
Central banks are expected to expand the stimulus worldwide
Meanwhile, the mood is definitely less optimistic in macroeconomic markets early in the week.

The combination of tighter restrictions on coronavirus, measures to inflate fiat currencies by several central banks, and uncertainty surrounding the US election affect sentiment.

Just a week before the day of the vote, a new scandal broke out around Washington over the approval of measures to combat the coronavirus, which exacerbated the market turmoil.

In Europe, all eyes are on the European Central Bank to expand its monetary stimulus program, which is already worth € 1.5 trillion. The central banks of Japan and Canada will also announce an update on their response to the virus this week.

“As for an actual return on growth or a trend ahead of Covid, it could take more than a year,” Chris Chapman, portfolio manager at Manulife Investment, which manages more than $ 660 billion in assets, told Bloomberg on Sunday.

“Recovery time will be delayed, but the vaccine is still expected next year.”
The US Dollar Currency Index (DXY), where bitcoin has shown significant reversal correlation, has begun to rally in recent days as stocks began the week with a downward trend.

Foundations broke record highs
Another sign that Bitcoin may take a breather in the coming weeks is that basic networks are showing signs of weakening from recent gains.

According to resources, including BTC.com and Blockchain, difficulties and hashrate tend to subside or in the short term.

Source: CoinTelegraph

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