As a new week begins, Bitcoin is once again at $57,000 thanks to a late rally that led to a far stronger weekly close than many predicted.
Bitcoin surpassed $58,000 overnight before consolidating higher, still up around 5.7% on the day, making up for the sell-off and price dip last week caused by the coronavirus.
There could be a lot of surprises in store. Concerns about the coronavirus remain as macro markets give hints before the market opens, and sellers can still take advantage of leveraged optimists who are high on recent gains.
Because the monthly close is expected in less than 48 hours, Cointelegraph examines the data to see what factors might influence Bitcoin‘s price performance this week.
Bitcoin Bounces Back in Record Time
After a $6,000 daily candle loss three days ago, BTC price movement has already begun to recover.
Bitstamp’s price for BTC/USD at the end of the week was $57,300, thanks to a classic weekend rally. This kept it from falling to its lowest weekly end price in two months.
The gains have held, and as of Monday’s writing, $57,000 was still the primary target.
A popular trader and analyst named Rekt Capital recently wrote an article about how the 21-week exponential moving average (EMA) at $52,500 is a “time-tested bull market indicator.”
But even though Bitcoin reached a local high of $58,300, it hasn’t been able to break out because of strong resistance near $60,000.
Since that selling zone stopped providing support, it has been hard to break through.
Data shows that some people were surprised by the rise. In the last 24 hours, liquidations have come close to $300 million.
Also, financing rates, which were neutral on Sunday, are going up, which shows that investors are once again optimistic about a long-term rise in the BTC price and the volatility that comes with it.
A +7% daily candle was enough to put to rest concerns over the start of a new BTC bear market, according to Rekt Capital.
According to him, BTC/USD is “developing favorably” as the monthly close approaches on Tuesday.
Coronavirus and a March 2020 Replay
As the new coronavirus-type omicron continues to hurt people’s feelings, traders on the broad markets are getting ready for a rough week.
To determine the impact on growth, “we really need some more answers,” Priya Misra, global head of rates strategy at TD Securities, told Bloomberg on Monday.
Last week, prices were always going up and down a lot. Bitcoin and other altcoins followed stocks, oil, and other things in a blitz sell-off.
It looks like Monday’s opening in Asia will be no different, and 1% to 2% more losses are likely.
Bitcoin is on the rise, but any further disruptions to macrostructures could derail the trend.
Bulls are expecting a repeat of March 2020, when a large number of people sold cryptocurrencies at the same time that the coronavirus was introduced to the world, and the market responded with a rise that broke all records.
However, Bitcoin was not spared the wrath of critics last week, with several well-known figures lining up to say that the cryptocurrency is not a safe haven.
Peter Schiff, a gold bug, said on Friday that Bitcoin’s “less hazardous” status does not make it safe, and he predicted that Bitcoin would eventually become “as risky as any altcoin.”
Where will Bitcoin End “Moonvember?”
People used to argue a lot about the answer to this million-dollar question, but now investors are starting to accept that this bull market might end later than expected.
Despite this, there is still hope for the near future.
It was predicted by almost 50,000 Twitter users in a poll sponsored by the @Bitcoin account that the BTC/USD exchange rate would conclude the month of November at or above $60,000, and the poll closed on Monday.
Twenty-five per cent predicted a closing price in the $55,000 to $60,000 range for the month of November, while 35 per cent picked the highest possible price on the survey.
It’s easy to lose sight of how far Bitcoin has come in the past year if you don’t step back and look at the big picture. According to Cointelegraph, BTC/USD was trading at around $16,500 around last Thanksgiving, which coincided with a minor sell-off.
Do not lose sight of the big picture, as quant expert Benjamin Cowen put it this weekend.