The price of Bitcoin continues to fluctuate wildly this week, with one Bitcoin exchange briefly dropping in value by $1,000 per coin. So far this year, the value of Bitcoin has risen 245 percent, making it the world’s best performing currency. In other news, the CEO of the popular online retailer Overstock, Patrick Byrne, has announced that the company will begin accepting Bitcoin as payment beginning this summer.
The past few weeks have been a bumpy ride for Bitcoin. The currency’s value has been increasing for years—so any modest drop feels like a crash. But after dropping by a third in mid-February, Bitcoin has hit lows not seen since last November. If you want to invest in Bitcoin, a good place to start is the recent BitCoin price history. Here are 5 things to watch in Bitcoin this week:
Bitcoin (BTC) began a new struggle on Monday, reaching $59,500. Will we see $60,000 this week?
After a promising but subdued weekend, BTC/USD is back at breaking resistance at the reopening of the major markets.
Given the strength of the underlying technicals and buying demand, the bulls may have reason to celebrate in the coming days. However, the resistance held them back for weeks.
Cointelegraph presents five things that can help influence the price of bitcoin.
dollar falls due to attack on oil pipeline
Equity trading in Asia began on a typically positive note, with traders betting on a continuation of existing highs.
Last week’s new all-time high of the S&P 500 Index kept minds busy, and the coronavirus pandemic did not affect the historical returns of individual markets.
ChartBTC/USD vs S&P 500. Source: View of the shop
Commodities were propped up by a ransomware attack in the US that sent oil prices soaring to a three-year high before the market calmed.
This disruption to the distribution of refined gasoline and jet fuel underscores the vulnerability of our critical national infrastructure in cyberspace and the need for effective protection against cybercrime, Bloomberg reported, citing the government.
The dollar came under fire when the US currency index (DXY) suddenly collapsed, pushing bitcoin above $58,000.
With the pipeline still closed on Monday, there was only a modest bounce, giving BTC/USD another boost on a DXY basis.
As Cointelegraph often reports, the DXY and bitcoin tend to have an inverse correlation, but this year that relationship has become more irregular.
One-day candlestick chart of the U.S. dollar currency index (DXY). Source: View of the shop
Record level of hashing function preceded by a serious increase in complexity
Bitcoin is a work in progress, at least as far as the foundations of the network are concerned.
After a sudden collapse in the hash rate last month due to an influx of miners in China, network strength and corresponding prices have steadily recovered.
This process was evident last week, with commentators noting that the negative impact of the event was almost on bitcoin.
However, the forecasts now reflect unprecedented interest and competition among miners, as well as a strong commitment to the future of the network.
According to blockchain monitoring resource Blockchain, the hash rate reached a new all-time high, with a seven-day average of 131 hashes per second (EH/s) on the 25th. April at 177 p.e./s starting Monday.
Graph of Bitcoin’s average hash rate over 7 days. Source: Blockchain
The difficulty level, which was automatically adjusted downward to account for the reduction in the number of minors, should also now increase significantly when it is adjusted in about two days.
The expected increase in complexity of 13.5% is the largest since last June.
If the old saying that price follows hashrate is true, bitcoin holders could see prices rise in the coming weeks.
BTC price about to hit $60,000
As for price action, traders are looking for a dip in the spot price of BTC this week that could lead to a breakout.
After ups and downs, but generally after higher highs and higher lows in recent days, bitcoin should make a stronger statement.
On Monday, the well-known crypto-Ed trader said that a downward move from current levels around $59,000 should end with a drop of around $800 before trading resumes, leading to a breakout of the $60,000 resistance zone.
The BTC plan for today: Weaker correction after 5 legs of rise. Expect a rebound and then further increases to 62k and 68k. Potential bounce zone (green box) = 58100-58200, he responded on Twitter with the forecast chart.
1-hour candlestick chart of BTC/USD (Bitstamp). Source: View of the shop
The battle for the last resistance near the all-time high of $64,500 has been going on for several weeks now, and every attempt to overcome the seller’s resistance ends with a smaller or bigger drop in price.
A look at the order book structure on Binance, the world’s largest exchange by trading volume, showed that the $60,000 zone was still holding Monday, supported by growing walls of selling below the highs.
On the other hand, buyer support was not seen until the $50,000 level, which offers a large potential trading range should BTC/USD fall again.
BTC/USD (Binance) Order book composition. Source: Material displays
Ethereum breaks the $4,000 barrier
Bitcoin may have to wait to reach highs – Altcoins are already gaining ground this week.
Charton the market dominance of cryptocurrencies. Source: CoinMarketCap
Led by Ethereum (ETH), most major cryptocurrencies returned to form on Monday after mixed momentum over the weekend.
The ETH/USD exchange rate, which never fails to surprise, broke through $4,000 on the day and showed no signs of slowing, hitting new all-time highs and confirming traders’ predictions of a rise to $5,000.
The advantage of the larger altcoin was not only evident through the price action. According to analytical source CoinMarketCap, Ethereum’s overall share of the crypto-currency market now stands at 19.1%.
On Monday, the market capitalization surpassed $2.5 trillion, while bitcoin’s share is getting closer to 40 percent.
The value of the crypto-currency market has reached $2.5 billion and #Ether has reached a record high of >$4k. The #Bitcoin is currently at ~$59k, its dominance has reached its lowest level since 2018 at 44%, while Ethereum’s dominance is at a record low of 18%. pic.twitter.com/vhI2I8QPPw
– Holger Zschaepitz (@Schuldensuehner) May 10, 2021
When ETH/USD rose 31% in one week, other altcoins began to copy that success. Kadano (ADA) has reached its uptrend, while Litecoin (LTC) and Bitcoin Cash (BCH) have reached weekly gains of nearly 50%.
In contrast, the highest percentages were significantly lower: Dogecoin (DOGE) and Ethereum Classic (ETC) are unchanged after hitting all-time highs last week.
Strong hands strengthen their positions
Meanwhile, if we take a break from the short-term story, there is a familiar feeling that all is well with bitcoin.
While altcoins are booming, the slow but steady transfer of bitcoin wealth from weak to strong hands continues, according to statistician Willie Wu.
When Wu analyzed the data late last week, he pointed out that this year’s bull market differs from others in that speculative hands don’t linger long and experienced players buy at higher prices than ever before.
This cycle is different; the movement from coins to strong holders is unprecedented, he summarized with data from the Glassnode chain monitoring source.
According to Cointelegraph, this trend marks several phases of 2021 in terms of the price of BTC.
This source has been very much helpful in doing our research. Read more about ethereum outpacing bitcoin and let us know what you think.
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