Bitcoin (BTC) started the last week of March with a bang after returning to its annual opening price above $46,000. Continuing to rise since Saturday, BTC saw levels not seen for months. So, will the rise continue? What to expect for BTC this week? Here are 5 items that can affect Bitcoin and altcoins this week…
Does Bitcoin end its decline in 2022?
An uncharted landscape has been seen since the new year, with BTC/USD returning at $47,000. After jumping almost $3,000 in 24 hours, the biggest cryptocurrency has taken a hard hit to the resistance levels that have kept the bulls in place for months. The significance of $46,000 has been a hot topic for almost a long time – many said a return to this level would be a sign that Bitcoin is ready for big things once again. People do not ignore the potential for further uplift.
Analyst and statistician Willy Woo, “Basic buy pressure for Bitcoin It has now climbed into the bull market zone,” he said. Meanwhile, analyst Matthew Hyland, a key supporter of the $46,000 argument, gave a target of $52,000 to break as the next long-term resistance wall. In his Twitter posts, he added that prior to the move, there was a breakout in Bitcoin’s relative strength index (RSI) indicator, which itself is a classic breakout trend signal. Therefore, the RSI is thought to be able to determine the extent of the rally.
Do bitcoin and stocks diverge?
With inflation, the war in Europe and the continuing threat of the coronavirus, as we reported on Cryptokoin.com, commentators made bleak forecasts for stocks and risk assets in 2022. Noting the March 2020 date, some argued that the era of “easy money” that followed this event was over, and that only continued quantitative easing would bring back the massive capital flows that Bitcoin achieved later that year.
But now Bitcoin seems to stand out on its own, challenging an intense stock market correlation in the S&P 500 sample that hit a 17-month high last week. As S&P fends off the impact of the Russia-Ukraine war and the Fed’s tightening plans, analysis shows sales are substantial.
Woo, on the subject, “The risk/risk relationship for stocks is a short-term effect. “BTC mimics this correlation due to short-term speculators,” he said. Meanwhile, open interest in Bitcoin futures is now at its highest level since December, according to data from Coinglass.
Will short-term investors sell their BTC?
New entrants bought in as it fell from its all-time high and have been inundated ever since, thanks to Bitcoin providing the ceiling for the 2022 trading range. Glassnode warned that a comeback could spoil the mood as a rush to exit these buyers. So far, short-term holders, defined as holdings of cryptocurrencies for 155 days or less, have not triggered any direction changes in the trend.
Bitcoin’s network fundamentals look promising
Bitcoin’s network fundamentals are determined not to disappoint this year. Next week will be no exception as Bitcoin’s network difficulty climbs to new record highs of around 28.67 trillion. The move follows a month of losses for miners operating in Kazakhstan, accompanied by the results of the turmoil. The next difficulty setting will add 4.4 percent, making the difficulty greater than ever before. The increasing difficulty also points to a rise in Bitcoin’s hash rate. The 50% hashrate drop last year caused by a crackdown in China, formerly the mining stronghold of the world, no longer seems like a distant memory.
Meanwhile, the attempt to ban Proof-of-Work cryptocurrency support in the European Union failed to gain the support of lawmakers for the second time last week. The hash rate provided by mining pools stands at around 219 exahash per second (EH/s), the highest ever recorded.
Greed returns for the first time since $60,000
For the first time in 2022, the Crypto Fear and Greed Index revealed how enthusiastic the average crypto investor feels. For the first time since Bitcoin’s all-time high of $69,000 in November, the classic sentiment indicator has entered “Greed” territory. The transformation of this month’s emotion was impressive as well. Just a week ago, mood was measured as “extreme fear.”
But some are more excited to see what happens next. JRNY Crypto said on Sunday, “Crypto markets are in a steady uptrend as the supply shock begins. It only takes one bullish event to send this back to all-time highs. Watch how things go wild when emotion shifts from fear to greed while supplies are limited.”
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