Bitcoin (BTC) jumped to a new high throughout the weekend, but what awaits us at the start of the new week?

With $ 24,000 still running, Cointelegraph is looking at five factors that will influence Bitcoin’s price movement over the next few days.

The coronavirus stimulus deal includes direct payments of $ 600
The United States breathed a sigh of relief when Congress was ready to pass a $ 90 billion stimulus bill against the Coronavirus.

The dollar rallied on news of the approval of the bill, which includes a second round of stimulus reviews for qualified Americans, after months of failed negotiations. In the past, direct payments were missing from the bill, but they have since returned in the form of a modest $ 600 versus $ 1,200 in March.

However, the transition surpassed in one fell swoop the $ 787 billion stimulus plan for the 2009 financial crisis.

Attention will now be focused on whether the bill can be voted on on Monday – the declining US dollar will suffer as a result of the rejection, which will potentially benefit Bitcoin.

“Bitcoin was created precisely for this reason during the financial crisis of 2008. Is it really surprising that #Bitcoin is making new full-time highs?”
Meanwhile, Cointelegraph Markets analyst Mikael Van de Pope has sounded the alarm about the long-term effects of a US debt increase by financing a stimulus bill.

Coronavirus Relief Law Agreement worth $ 900 billion. On Monday he wrote “another step towards weakening the US dollar.”

This seal will not end in anything, as it has not expired historically. It is just an expansion and an attempt to continue our failed economic system. To accept. Buy bitcoin. ”
Unlike March, regular media is already showing recipients how to make incentive confirmation work by purchasing BTC.

BTC / USD stayed around $ 24,000 on Monday, hitting a record high of $ 24,217 on Saturday and maintaining support for $ 20,000 without any major tests.

The Federal Reserve allows banks to buy back their shares
The strengthening of the banking sector was made possible by the US Federal Reserve System’s decision to allow the six largest banks to begin repurchase operations again in 2021.

The $ 11 billion statement means that share buybacks – something Bitcoin and safe lawyers despise – can be resumed for the first time since the March crash.

However, the Fed was not concerned about the upcoming negative consequences, when Bloomberg quoted Deputy Supervisor Randall Quarles as describing the banks as a “source of strength” in 2020.

According to him, the Fed’s stress tests confirm that “large banks can continue to lend to families and businesses even during the future swinging unfavorable to the economy.”

As Cointelegraph reported, Bitcoin appears to have benefited from rising central bank balances, with higher prices as the Federal Reserve and other institutions raise funds from their current mountain of debt.

While the BTC / USD exchange rate stabilized over the weekend, the jump in the Dollar Index (DXY) failed to exert noticeable selling pressure from the largest cryptocurrency. The DXY index jumped from a low of 89.7 on December 18 to 90.5 on Sunday night, still close to a three-year low.

Analysts see a $ 19,500 drop in Bitcoin’s price
Meanwhile, short-term price action has focused on a large group with $ 26,000 above, but a decline that could extend to under $ 19,500.

This was according to Van de Pope on Sunday, who in his technical analysis highlighted several contractions since the start of the month that should be phased out.

In particular, it is linked to gaps in CME Group Bitcoin futures, two of which are over $ 1,000 and still vacant, making the week’s opportunity only $ 16,900.

“In a shorter time frame, we have some important things to consider,” he said. “Yesterday we saw a higher rally, which is an all-new high. However, overall, there is less volume of potential downside divergences.”

He said that support levels need to be held at $ 22,800 this week to stimulate further gains, but that a “consolidation period” such as recent low volatility highs could resume soon.

“This will contribute to the potential strong movement for ETH / BTC,” he added about the growth prospects for Bitcoin’s largest alternative currency (ETH).

Bitcoin doesn’t care about Elon Musk’s tweets
Meanwhile, a high-profile Twitter trading platform that reached out to major media over the weekend was unable to influence Bitcoin’s price movements in real terms.

Source: CoinTelegraph