Bitcoin (BTC) began the new week with just 5 percent to reach $ 20,000. And will he be able to reach this level?
Vaccination and incentive decision boosts risk appetite
Broader macro-level interest has mostly been translated into the US, which this week debated a new coronavirus incentive package.
There is no guarantee that talks on the stimulus package, which will significantly test the strength of the dollar, will succeed, but the amount of the stimulus package discussed in the negotiations is approaching $ 900 billion.
The package will include support for various economic sectors, but will not include a second aid voucher for the U.S. public.
Both the stimulus package expectations and the U.S. approval of the vaccine have revived the long-losing dollar. On the other hand, risky assets are also recovering.
The Japanese market hit its highest level in two years on Monday, as stock markets began the week rebounding. Oil also recovered, closing near $ 47.
For Bitcoin, the appreciation of the dollar could be a problem due to the negative correlation between BTC and the US Dollar Index (DXY).
DXY tracks at 91 points per translation release time.
BTC price nears critical resistance
Bitcoin, which has spent the past week in decline, started the rally after Friday, rising from$ 18,000 to $ 19,400.
Gemini co-founder Cameron Winklevoss “Bitcoin is slowly rising above $ 19,000 on Sunday. It’s not a big deal, ” he summed up.
BTC / USD pair finds buyers at$ 19,165.83 as of the time of writing, the price of Bitcoin (BTC).. The cryptocurrency’s rally paused at $ 19,400 resistance. This level, which coincides with solid sales pressure in the $ 600 range ending at $ 20,000, is of great importance.
Bitcoin’s attempt to rise to $ 20,000 failed, causing it to drop to $ 17,750. The exchanges ‘ order book data shows that sales orders are still available at the same point. If 20 thousand dollars are passed, there is no great resistance to 22 thousand dollars.
$ 1,000 scissors opened
There is one more hurdle to the prospect of rising to$ 20,000: the scissors that opened and pressured Bitcoin futures markets over the weekend.
Monday’s Friday closing price represents the difference between the CME Bitcoin futures market’s closing price and Monday’s opening price, which is about $ 1,000. These scissors are currently around $ 18,100.
Bitcoin price has historically tended to close these spreads, but there are now two large spreads, with $ 1,300 yet to close and $ 1,000 mentioned.
“Remember, we may have to close the CME futures cutting machine at $ 16,925 before it hits the record, “warned Forex investor Justin bennett.
Corporate interest bolsters Bitcoin’s image
The attention shown by institutions continues to improve market sentiment and gives Bitcoin a positive reputation in the mainstream.
Insurance fund MassMutual’s announcement last week that it would invest $ 100 million in Bitcoin drew praise from JPMorgan, previously known for its bitcoin criticism. Bank strategists are predicting more buying, Bloomberg said.
“MASSMUTUAL’S BITCOIN INVESTMENT REPRESENTS AN IMPORTANT STEP IN BITCOIN’S POPULARITY AMONG INSTITUTIONAL INVESTORS.”
Number of high-balance BTC wallets hits record
But away from the big players, evidence of “big turnout” is growing.
The number of bitcoin wallets containing 1 BTC or more has broken a record, according to data from glassnode, the source of analysis on the chain. Almost 827,000 bitcoin wallets as of Sunday contain balances of 1 BTC or more.
According to the latest Data, Bitcoin continues to move from exchanges to cold storage despite the price increase.