A time tunnel that will run until November 2020 begins on BTC price action , Bitcoin news platform , as BTC price action continues to rise as the U.S. dollar lays waste to both equity and currency.
Bitcoin ( BTC) begins a new week looking into a tense macro environment after it surpassed the lowest close of the week in more than two years.
While risk assets across the world economy are hit hard as it is reported that the United States dollar surges, the biggest cryptocurrency is on an unsteady footing.
The month of September, which began as a bullish month and is now living up to its infamous cryptocurrency market nickname, “Septembear,” and BTC/USD is down 6.2 percent since the beginning of the month.
The bad news continues to come for hodlers who are still holding on to their dormant currency in greater numbers since the dollar has become a raging force and the desire of mainstream investors to diversify into riskier investments has been fading, Bitcoin news site .
The macro market is expected to remain the primary focus for anyone during the week Cointelegraph looks at what’s in the near future for BTC price movements.
In economic conditions that are comparable to any major period of history-making turmoil that has occurred in the last hundred years, there are a few things to consider in assessing where Bitcoin may be heading next.
Weekly close pushes BTC/USD back until November 2020.
Although it was not as bad as the losses of the previous week (3.1 percent against 11 percent) The past seven days did make bitcoin’s lowest weekly closing since November 20, 2020 according to information obtained from Cointelegraph Markets Pro and TradingView show.
Since the downtrend continues to come, Bitcoin pr news distribution service ,Bitcoin has thus turned back to the time before the breakout, which brought it past the previous ever-high halving cycle.
The sensation of déjà was not a pleasant experience for the typical hodler because the vast majority of the money spent on buying and cold storage over the last two years has now dipped below.
“$BTC just made the lowest weekly close in this zone,” the well-known Twitter analyst SB Investments summarized following the close:
“Looks bearish, with stocks looking to break resistance as well. However, on the flip side this is the expectation of everyone.”
The possibility that the markets will make the unexpected “max pain” move to the upside, thereby removing short bias is an important option for those who are Bitcoin users , Bitcoin press news distribution service . For the well-known trader Omz who has a weekly close price of $18,800 is the most compelling low in the local market.
The RSI divergence is not going unnoticed by other traders, with trader JACKIS signalling its arrival last week.
“We only got two touches of the oversold territory in the past & they have always marked the exact bottom as well,” the trader posted on Twitter at that time.
A fellow trading account IncomeSharks have also suggested the possibility of a reversal occurring with an election in the U.S. Bitcoin press release distribution service ,midterm elections in the beginning of November, but fell from saying it was the time to get already in.
“Elevator down, stairs up,” it said on the chart of 4 hours at the time:
“Keep in the process of building double bottoms, and building new supports. Midterm Rally remains on the table. Destroy this structure, take away these targets, and then find an alternative bottom.”
The dollar wrecking ball can cost stocks and fiat
Monday is barely getting underway and the chaos that was a part of last week’s turmoil has already returned with a vengeance against macro markets.
Unstoppable U.S. dollar is laying destruction to important currencies of trading partners and currencies, Bitcoin press release distribution , with it’s Great British pound sterling making headlines throughout the day as it plummets by five percent, bringing it within a few percentage point of USD parity, which is its lowest level against the greenback in all time.
GBP/USD will be a follow-up to the euro, which would eventually become worth less than $1.00 and the saga caused Japanese authorities to support the exchange rate for yen by artificially increasing it the last week.
EUR/USD briefly dropped below $0.96 but then retreated to $0.96 before rebounding modestly and USD/JPY is still near its record high from the 1990s, despite Japan’s intervention.
In the meantime alarm bells are ringing for bonds across the world that have retreated to their levels in 2020 , Bitcoin news distribution network . Markets commentator Holger Zschaepitz warned alongside Bloomberg data:
“Looks like the bubble in the market for bonds has come to an end. Global bonds’ value has fallen by an additional $1.2tn in the last week. taking losses total down from ATH up to $12.2tn.”
Stocks are likely to perform worse than expected as futures are down the day that will lead up to Wall Street open. Brent crude oil was lower than $85 per barrel at the beginning of the beginning of 2022.
“Global bonds are collapsing in their fiat currencies, which are collapsing against the dollar, which is fast losing purchasing power,” Saifedean Ammous, the author of two popular books “The Bitcoin Standard” and “The Fiat Standard,” responded:
“It could be months and decades before the typical user of fiat realizes how much they’re being ruined financially , Pr services for Bitcoin companies and startups . The new normal has become poverty.”
Since crypto is still heavily correlated with stocks , and ininversely correlated with dollar strength The prospects for Bitcoin is not positive, as the current situation is likely to stay.
Euro Area Consumer Price Index (CPI) is due later this week and is expected to indicate that inflation is still rising as well as the U.S. Personal Consumption Price Index (PCE) report is expected to maintain in the U.S. downtrend which began in July.
The U.S. dollar index (DXY) however shows no signs of slowing down, and is currently at its highest level since May 2002.
Hodlers in the classic bear market mode
With all the chaos, it’s little surprise Bitcoin hodlers’ belief in the cryptocurrency is growing, and long-term investors are refusing to sell.
The stout hodling is the hallmark for Bitcoin bear markets , Bitcoin news platform . The most recent information indicates that the same attitude is back this year.
According to the onchain analytics firm Glassnode the Bitcoin’s Coin Days Destroyed (CDD) measurement has set new records.
CDD is the term used to describe how many dormant hours are erased when BTC is removed from its host wallet after a specific time. If CDD is large, it means that more coins stored for the long term are in transit.
“The total volume of Bitcoin coin-days destroyed in the last 90-days has, effectively, reached an all-time-low,” Glassnode said:
“This indicates that coins which have been HODLed for several months to years are the most dormant they have ever been.”
This news comes on the heels of hodl-related metrics that show an effort to ensure that the BTC supply secure and secure for the coming days.
Glassnode in turn, Bitcoin news site , noticed the rising number of hoarded coins that are kept indefinitely for three months , as an amount of USD amount of BTC supply.
“Bitcoin HODLers appear to be steadfast and unwavering in their conviction,” it was agreed.
The accompanying graph depicted the Bitcoin’s HODL Waves metric, an illustration of the supply shattered through coin dormancy.
Whales continue to dictate the direction of support and opposition
As old-fashioned investors shy away at hitting the “sell” button, Bitcoin’s most prolific investors are on analysis of experts in the process of identifying price fluctuations.
This trading area of the market is an zone of particular interest because of the amount of whale-based money during the previous.
Large purchases add importance to a certain support price , and similar is the case for resistance levels , Bitcoin pr news distribution service . According to the on-chain monitoring tool Whalemap BTC/USD is in between these two levels.
“Holding 19k-18k is key for $BTC,” the Whalemap team wrote in the middle of last week.
A chart that was included revealed levels of whale resistance that are capping some relief from Bitcoin and restricting it to in the $20,000-$20,000 range.
However, different figures from the research company Santiment show this fact: whales’ BTC exposure overall has dropped to near-two-year lows.
“Extreme fear” enters second week
In a recurrence of 2022 standards, the cryptocurrency market sentiment has seen the market in “extreme fear” mode for more than one week.
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According to the Crypto Fear & Greed Index which evaluates the general sentiment of the crypto market investors, average investors should not be more uneasy about the future .
In September. 26th, Fear & Greed recorded an average of 21/100 and 25/100 was the threshold for fear that is extreme.
Cold feet are nothing but it was a new phenomenon in the marketplace in the year that was the longest time it has been in “extreme fear” at over two months.
The silver lining may be found in the social media’s interest as it grew during this weekend Santiment pointed out.
“Among crypto’s top 100 assets, $BTC is the topic in 26%+ of discussions for the first time since mid-July,”, Bitcoin press news distribution service , it was revealed in a segment of Twitter remarks this week:
“Our backtesting shows 20%+ dedicated to Bitcoin is a positive for the sector.”