By Rubikav® on The Capital
Investors are waiting for the US employment report for August released on Friday to get an idea of how the job market recovery is progressing after the pandemic, as say the last investing article.
Markets will also be on the lookout for appearances from senior Federal Reserve officials after President Jerome Powell announced last week a sweeping rewrite of monetary policy that places more emphasis on tightening the labor market than controlling inflation.
The S&P 500 is on track for its best August in 34 years, while the Dow index will have new members starting Monday. Economic reports from the Euro Zone will shed more light on the durability of the bloc’s recovery, while China’s PMI data will show if there are any signs of how the recovery of the world’s second-largest economy is progressing.
This is what you need to know to start the next days that are coming.
Bitcoin showed lateral movements during the week, ending this Sunday above $ 11,600. There were expectations in the week about bitcoin’s reaction to the Fed’s remarks on controlling inflation, as wrote by criptonoticias.
Indeed, the president of the Federal Reserve, Jerome Powell, confirmed on Thursday that this body will allow inflation to exceed 2%. Despite the fact that it is a measure with medium and long-term effects, the expected rebound in the prices of gold, silver, and bitcoin occurred, but in less than an hour, they fell back to the values they had before the announcement.
In the case of bitcoin, the decline reached $ 11,238, later registering a sustained recovery. At the time of this writing, bitcoin is reaching $ 11,661.
We are really in a new accumulation phase that can vary between 11200 and 17540. But we see that the monthly chart still continues the trend of wave 1 of Elliot remains.
Likewise, with the monthly close above 0.5 of the Fibonacci retraction line, we can confirm this continuation of the trend, which we believe will end until reaching the much desired twenty-thousand dollars by the community and breaking the historical maximum.
And as says by criptonoticias, against the background of these occasional fluctuations in the price of bitcoin, various opinions from bitcoiners, analysts, and investment firms, this week, make up an auspicious outlook for the main cryptocurrency.
Volatility Remains Muted
The permanence of external factors that point to the deepening of the economic crisis, together with data from the blockchain, seem to constitute a solid basis for the healthy development of bitcoin.
For more scam factories that appear in the market and even if they exceed the maximum price of bitcoin, the father will be and continues to be the father of everything. Bitcoin in all aspects continues to be more robust than the rest of the cryptocurrencies on the market.
The criptonoticias news also says that Grayscale considers that BTCs that have not moved in a period of one to three years belong to retainers or holders, while coins that have moved in the last 90 days belong to a speculator. The following graph is auspicious for bitcoin as it reflects an increase in holders and a decrease in speculators.
Grayscale draws attention to the similarity of this structure with that of 2016 when the coincidence of a maximum in holders with a minimum of speculators marked the minimum point of the price of bitcoin before undertaking the bull run that took a year. then to an all-time high.
Another metric pointed out by Grayscale, in addition to the evolution of the reserves against the flow (stock-to-flow), or the active addresses, is that of the “sleeping bitcoins” for a year or more.
The current figures for BTCs that have not been touched for a year or more reflect an all-time high, indicating, according to Grayscale, “strong conviction in Bitcoin on the part of its current investor base.”
The truth is that Grayscale bought more Bitcoins than it could and now a few are offering its investment fund to its clients. Great anticipation and good strategy.
Another study commented on by CriptoNoticias, focuses on the background of the current economic crisis, before the appearance of Covid-19. Published this week by well-known cryptocurrency market entrepreneurs Tyler and Cameron Winklevoss, the article claims that the US economic crisis could push the price of bitcoin to $ 500,000 in the next decade.
To support this hypothesis, the directors of Winklevoss Capital point out that two of the assets considered safe havens, oil and gold, have problems that favor bitcoin as a store of value, given the worsening economic outlook, which will bring inflation.
Gold has some problems according to the document, among them portability, storage, and security, areas in which bitcoin has a clear advantage. The Winklevoss advance a hypothesis about a possible end to the gold shortage: the advancement of the space race and the possibility of mining in meteorites. There is already documentation of 600,000 of them and their composition, as well as permits and legislation that encourages space mining.
In their final analysis, cryptocurrency entrepreneurs argue that bitcoin would be undervalued by a factor of 45, putting its price in the neighborhood of half a million dollars.
The trader and founder of Quantum Economics, Mati Greenspan, highlights in this tweet the almost perfect correlation between bitcoin and gold, before and after Jerome Powell, president of the Fed, pointed out, last Thursday, the position of that body of allow inflation to rise above 2%.
A coupling of bitcoin to gold, or to traditional stock indices, is not totally welcome in the bitcoin world, because it would make it an asset that is too sensitive to economic or political events.
Analyzing bitcoin’s historical price data, or its various indicators is not a foolproof tool for predicting its future price. However, there are patterns that traders take into account to support their investment strategy. CriptoNoticias this week addressed a study of four cycles of the price of bitcoin, published by Coin Metrics, including the current cycle, still in development.
For the first three cycles, three bull cycles were chosen, from a minimum value to a maximum. The article analyzes the cycles that start in 2010, early 2014, early 2015, and the current one, which starts from the minimum of December 2018.
The analysis concludes that the cycles are increasingly extended, from which it is inferred that the current cycle can extend until 2022. On the other hand, similarities were found with analysis by CriptoNoticias, published in April of this year, on the patterns seen in the first two Bitcoin halvings.
According to the last glassnode report, During Week 35, a few of the top altcoins lost value against BTC, while others gained value. After falling by almost 20% the previous week, LINK gained 11.1% against BTC, while ETH also gained 7.8%. Meanwhile, bitcoin forks (BCH and BSV) and XRP lost value against BTC.
Overall, alts performed well against BTC over Week 35, with bitcoin’s market dominance dropping from 59.2% to 57.9%. Specifically, ERC-20 tokens appear to be performing well.
We are seeing a trend of previously obscure low-cap ERC-20s emerging into the top 100, overtaking the market cap of native tokens for the Bitcoin and Ethereum competitors which dominated the leaderboard a few years ago.
Also, because the price of BTC didn’t move much over Week 35, the top altcoins’ performance against USD was almost identical to their performance against BTC.
It is clear from these figures that, for the time being, Ethereum-based tokens are leading the charge into green digits.
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See you in the next story! With love Rubikav® Team!
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