What is worth watching BTC this week?

BTC is at a crossroads at the start of this week, hovering around $ 40,000, but there are serious obstacles to its growth. After an impressive weekend, when the price rose above USD 42,500, the decline came and BTC / USD lost the $ 40,000 mark. Turnover and consolidation were generally expected.

BTC is “raging” as the dollar withers

Shares and the US dollar continue to deviate from predicted patterns of behavior as far as BTC is concerned. After China targeted large technology companies late last month, BTC began to recover seriously, but stocks were catching up with lost positions.

However, markets in the United States are now on the rise again, while China remains nervous. As a result, the US dollar is losing ground to its counterparts, contrary to forecasts.

Currently, the US dollar currency index (DXY) traded at just above 92, down from the highs above 93 we had a week ago.

Bulk buyers and sellers on OTC in the viewfinder

As for BTC price developments, this is the story of two markets this week. The lightning rally in the last seven days has brought to the attention of one group of investors, large-volume buyers and sellers in over-the-counter (OTC) markets.

Although retail trade picked up, it was these larger players who were in search of analysts.

As BTC’s market balances began to plummet, speculation began to emerge that institutional entities were again buying up the free supply of Bitcoin on a large scale. At the same time, some old hands seemed to be selling, a phenomenon attributed to “distrust”, which nevertheless formed an obstacle to further price increases.

However, with the end of the weekend approaching, over-the-counter activity also began to shift to caution. Data from major derivative platforms, particularly FTX, showed accumulating bets on price declines, which popular trader Pentoshi suggested could be related to a cryptocurrency tax bill that US lawmakers could ratify this week.

Hashrate – difficulty accelerated the pace

Despite the changes in business practices, it is far from just a devastation at BTC. Fundamental indicators governing the network in the vast majority favor a bullish sequel, suggesting the latest data.

The difficulty, probably a key regulator of the network, saw the first positive correction since the price crash in May this weekend, increased by 6% and is set to grow further in 11 days.

This is by no means exceptional, the huge disruption among miners caused by China is now in decline as players settle abroad or increase existing non-Chinese operations. This is also evident in the hashrate, which, according to the best estimates, briefly climbed back above 100 EH / s over the weekend.

The GBTC is finally escaping the FUD

In addition to the story of China, another key point that is being talked about and whose importance seems to be becoming less and less is the unblocking of Grayscale BTC Trust (GBTC) shares.

Although, as a market force, these events are dubious at best, the unlocking has caused a stir even among mainstream financial entities, who have been convinced that this will further reduce the price of BTC.

This turned out not to be true, and as the unlocking is almost over, GBTC itself is increasing its attractiveness in the real-time market.

So far no room for greed

Slight cooling from local highs above $ 42,000 was, in fact, therapeutic in the market mood, based on an evaluation of one metric. According to the Crypto Fear & Greed Index, which takes more factors into account when measuring mood across the crypto market, a drop below $ 40,000 has washed away “greed.”

On Monday, the index was at 48/100, ie in “neutral” territory, compared to 60, ie “greed”, which we had here on Sunday.

Meanwhile, $ 40,000 is by no means lost, BTC / USD fluctuates around this level and at the same time tries to turn it into robust support. BTC’s price action therefore has room for growth without affecting sentiment to such an extent that a sell-off is very likely.

Conclusion

BTC rose at the weekend, but fell a little again. Did you expect this correction?