Bitcoin (BTC) kicks off the week with a $ 11,000 payout as the behavior continues, but the risk of futures bursting remains.
Cointelegraph examines five factors that could affect Bitcoin price movement over the next week.
Trump Tax Files Says $ 11,000 BTC Price Stopped
Bitcoin gave an unexpected boost on Sunday after a week of bad prices. This happened thanks to an investigation into the tax reporting of US President Donald Trump, the results of which were published in the New York Times.
The details only include $ 750 in taxes that Trump paid in 2016, with no other ties to Russia, which was a major source of controversy at the time.
However, the publication could have side effects on Trump’s chances ahead of this year’s elections, and markets will watch with interest for new shocks.
Trump himself has gone out of his way to keep tax records secret.
“This is completely fake news,” he said at a press conference at the White House.
BTC / USD rallied to $ 11,000 on Sunday but still hit a resistance level of around $ 10,950 to return to temporary levels just below $ 10,900.
This marks an upper limit for the weekly cryptocurrency area that has failed to result in a breakdown or breakdown beyond the $ 10,000 to $ 11,000 range.
$ 10,000 more Bitcoin than ever
Although more than $ 11,000 hasn’t been reached, Bitcoin still shows the bulls are right this month.
As many analysts pointed out on Sunday, BTC / USD has now spent more time trading over $ 10,000 than ever before – 64 days on Monday.
Anthony Pumplano, co-founder of Morgan Creek Digital, sums up the sentiment of cryptocurrency skeptics
Part of the tweet reads: “Bitcoin has spent 63 consecutive days worth over $ 10,000 and shows only signs of optimism.”
“The market shows that your downturn is wrong. There is always time to surrender and join the party. ”
Others believe that the five characters still have a chance to part ways. In case of support for the decline, the CME Group futures gap, which remains open at $ 9,600, has not been tested.
In Saturday’s analysis, Cointelegraph Markets analyst Michael Van de Pope highlighted the gap as a possible outcome of a bearish scenario for Bitcoin as current levels continue to open up the possibility of higher pressure.
Bitcoin basics don’t care
The underlying principles of the Bitcoin network still look stronger than ever and continue to emphasize miner involvement.
Both the weekly average crossover speed and difficulty have remained bullish since the start of the week, with a sharp 5.1% increase over the next five-day crossover.
The previous adjustment resulted in an 11.4% increase in health and confirmed the competition among miners for block bonuses. At the time, quantitative analyst PlanB described the move as “blurry,” four months after the recent cut in support for bitcoin by two and in line with behavior after the previous half.
Average hash rate, an imprecise but generally useful indicator for maintaining the network, meanwhile has been exercising higher than all-time highs since hitting 143 ex-hashes per second (EH / s) earlier in September.
DXY’s power failed to crush Bitcoin
Trump’s story has had little impact on the underlying US dollar counter, as Bitcoin has shown strong reversal correlation in recent months.
The US Dollar Index (DXY) has remained stable as the tax history has evolved after a week’s gains.
DXY places the US dollar against a basket of trading partner currencies and has significantly improved its position since mid-September. As Cointelegraph reports, this contributed a lot to the downward pressure on the Bitcoin / US dollar. Regardless, Bitcoin has held up better than expected over the past week, indicating that its relationship with the index may be in a state of relief.
Statistician Willie Wu previously predicted last week that Bitcoin would “soon” abandon its ties to traditional markets, including other safe havens such as gold.
In the meantime, however, any decisive change in the DXY could still affect Bitcoin’s movement in the short term.