Bitcoin (BTC) is back at $ 57,000 as a new week kicks off after the latest rally led to a much better end of the week than many expected.
To compensate for last week’s coronavirus sales and associated price drop, bitcoin broke through the $ 58,000 level overnight before consolidating higher, still around 5.7% during the day.
The outlook could bring many surprises – the nerves of the coronavirus are still raging, macro markets are outrunning the opening, and sellers still have the opportunity to tap into the optimists amid recent advances.
While things are in full swing and the close of the month takes less than 48 hours, Cointelegraph is analyzing the numbers to see what could be affecting Bitcoin prices this week.
Bitcoin is back in no time!
Just three days after losing $ 6,000 on a single daily candle, Bitcoin’s price action has already returned from the brink.
At the end of the classic weekend, the BTC / USD pair rallied to a weekly close at $ 57,300 on Bitstamp, avoiding a two-month low.
Winnings have continued since then, with $ 57,000 remaining in focus at time of writing Monday.
In a new analysis, popular trader and analyst Rekt Capital notes that the $ 52,500 21-week exponential moving average (EMA) provided support as a “time-tested bull market indicator.”
Summarizes the “strong reaction to BTC from the 21-week EMA.”
BTC / USD weekly candlestick chart (Bitstamp) with 21-week EMA. Source: TradingView
Despite local peaks of $ 58,300, Bitcoin did not make a definite surge as the key $ 60,000 resistance remained unchanged.
All previous attempts to break through this sales zone after losing it as support ended in flat refusal.
The data shows the growth has surprised some, with nearly $ 300 million liquidated in the last 24 hours.
Meanwhile, funding prices, which were neutral on Sunday, have risen at the same time, indicating a return to optimism about a robust rise in the BTC price – and the risks involved.
Rekt Capital added: “All it took was + 7% daylight to get rid of all fears and worries about a new bearish bitcoin market.”
He said that BTC / USD is “making a positive move” in terms of closing the month at the end of Tuesday.
Corona virus and March 2020
Macro markets are heading for a tumultuous start this week as the new variant of the coronavirus, the omicron, continues to stir up emotions.
“We really need more answers to see the impact on growth,” Priya Misra, head of global pricing strategy at TD Securities, told Bloomberg on Monday.
“Risk assets are assessed taking into account uncertainty.”
The past week was marked by significant volatility across the board as bitcoins and altcoins followed stocks, oil, and others in fast selling.
Asian markets look set to continue trending at the Monday open, with a 1-2% drop at time of writing.
With the advent of Bitcoin, further shifts in macrostructures have stalled renewed optimism.
The bulls are hoping the scenario will unfold in the same way as it did in March 2020, when the defeat of the cryptocurrency followed by the release of the Corona virus onto the global stage caused prices to jump beyond previous levels.
Bitcoin hasn’t been spared harm last week, however, when some famous personalities lined up to express contempt for what they believed was in no way an escape from risk.
Gold expert Peter Schiff said on Friday that “less risk does not make Bitcoin safe,” and predicted that Bitcoin would ultimately be “just as risky as any alternative currency.”
1-hour BTC / USD candlestick chart (bit print). Source: TradingView
$ 50,000 is $ 30,000 per floor
For those who are worried about a rebound from current levels, it may not be worth taking their eyes off the BTC price chart.
According to the latest order history data from analytics source Material Scientist, there is now a giant buyer’s wall that should keep the market above $ 50,000.
The stakes could be high, and some said this weekend that failing to maintain that level would force them to reconsider their approach to bitcoin, but given the scale of support, this seems less likely.
“I don’t know why you’re so scared,” the researcher said on Twitter on Sunday.
“This is the biggest bet since the 30,000 low.”
BTC / USD heatmap order book. Source: Material World / Twitter
If $ 50,000 is the new $ 30,000, the current pullback from all-time highs will be modest compared to others, especially the nearly 50% drop in May.