Bitcoin (BTC) starts a new week in familiar territory as the markets approach the US election in 2020 – where can you go next?
Cointelegraph examines five factors that could affect BTC’s price movement next week.
Macro in the US: Choices versus Incentives
The US has a strong focus on macro markets this week. The November 3 election promises to set the mood as it becomes increasingly clear which side will dominate the White House.
Analysts warn that the Democrats’ victory will hurt the dollar, if the long-term outlook is already bleak. However, Goldman Sachs said last week that the re-election of Donald Trump would not be enough to take the dollar out of danger.
In addition, Gold Haven is required to make serious progress after November – regardless of the election result. For others, Bitcoin will provide more impressive returns.
The strength of the dollar remains on the bitcoin radar thanks to the inverse correlation between BTC / USD and the US Dollar Index (DXY). Although this connection has become less clear in recent weeks, the sudden weakness of the US dollar may be a boon for the largest cryptocurrency.
In the meantime, not only the elections, but also the previous ones, are of interest. In particular, there are new tips about an agreement to stimulate the spread of Coronavirus, which was initiated before election day.
If that happened, several trillion dollars in cash would be added to a growing pile of US debt, and Americans would receive benefits like another $ 1,200 incentive check.
Europe suggests more intervention
In Europe, the picture is that the European Central Bank (ECB) itself is reacting to the Coronavirus, which continues to tighten its grip across the continent.
In a statement on Monday in the French newspaper Le Monde, European Central Bank President Christine Lagarde said that, if necessary, additional financial instruments remain to support the eurozone. In addition, the European Central Bank’s 878 billion recovery fund should become a permanent job.
The bank’s program to stimulate the spread of Coronavirus reached 1.5 trillion euros to buy assets.
“Our toolbox is not exhausted yet,” she said.
“If more needs to be done, we will do more. When I took office, I was told I had nothing more to do, and everything was done. But this is clearly not the case!”
The potential for instability in the euro area is reinforced by Brexit, which is increasingly close to the UK’s exit from the no-deal bloc.
When Prime Minister Boris Johnson announced the potential outcome of the experiment last week, the markets barely responded to the news.
Bitcoin basics break new records
Bitcoin remained largely in its range over the weekend, with just a short-term peak above $ 11,500 compared to sustained activity.
Regardless, from a technical perspective, record strength signs continue to appear this month. The complexity of measuring mining competition and network security is quite high again.
A few days ago, the latest revision showed that the difficulty increased by 3.5% more than expected.
Meanwhile, the sales rate also rose to a full-time one on Monday. At the time of publication, the calculated computing power devoted to mining was 146 wastes per second (EH / s).
As the Cointelegraph often says, the popular theory that the price follows the hash rate remains valid because miners are more optimistic than ever about Bitcoin as a long-term investment prospect.
The analyst sees a $ 12,000 BTC price breach
Cointelegraph Markets analyst Mikael van de Poppe believes a drastic change in Bitcoin prices will be more likely.
In his latest video update on Sunday, he stressed that several years of weekly close below the significant resistance level of $ 12,000 would soon end.
Van de Poppe claimed that since the bear market started in early 2018, $ 12,000 has been a mistake for the weekly chart, but the consolidation below cannot continue forever.
He summed up: “It is very likely that we will go up to the $ 16,000 range to $ 17,000 because this is a clear level and the last hurdle for Bitcoin to start breaking through all-highs.”
This move will be followed by a new consolidation period that may be longer than the current one. However, if a beef market materializes, it will be run by Bitcoin.