What to watch at BTC this week

BTC starts this week with a key weekly deadline below it and everything – can it stay higher? After a slight volatility over the weekend, including retesting $ 30,000 in support, BTC / USD is back above $ 35,000.

Kiyosaki: Get ready for “biggest crash in history”

Shares are leading this week rather than the US dollar, as the S&P 500 index is experiencing its best week since February. Shares rose over the past week due to easing fears of interest rate increases by the Federal Reserve System. This contrasts with the cooling of the US dollar monetary index (DXY), which has stopped gaining in recent days after a tumultuous, last week.

As the S&P 500 has thus reached a new all-time high, the risk of change cannot be reduced. At least for the time being, long-term bond yields remain under control and equities are more focused on the age-old recovery in economic growth and corporate earnings. The good news is that the best time to get rich is during a crash. The bad news is that the next crash will be quite possibly long.

BTC closes key weekly candle…

For the BTC spot price, Sunday brought the bulls a happy ending, which they expected. Specifically, this applies to weekly closures. In the end, BTC / USD exceeded expectations and rose by more than $ 2,000 during the night to record local highs of $ 35,250 on Bitstamp and a weekly close of over $ 34,000.

Record decrease in difficulty

For those who cheered six weeks ago on the biggest increase in BTC difficulty since 2014, this is bad news. With the network’s fundamentals facing problems as a result of mining shocks in China, the adjustment of the difficulty this week will reveal how much impact recent events have actually had.

In four days, the difficulty will be adjusted by an estimated 23.24% – which has never happened before in BTC’s existence. The record downward adjustment is a response to the mass shutdown of Chinese miners. Such modifications keep BTC’s production competitive while maintaining network security. The lower difficulty motivates more miners to join because the process becomes cheaper. This in turn increases competition, which means that larger declines are generally followed by increases.

The worldwide effort to adopt continues

Elsewhere, despite no formal changes in BTC’s status, its supporters appear to have gained courage due to recent events. Ricardo Salinas Pliego, the third richest man in Mexico according to Forbes magazine, repeated this weekend that BTC is “new gold” and revealed his own contribution to its adoption at the local level.

All this in an atmosphere of “extreme fear”

Even against the background of 5% of daily profits, sentiment around BTC is still strongly influenced by fear. This follows from the classic sentiment indicator, the Crypto Fear & Greed Index, which measured only 25/100 on Monday, despite rising prices.

A curated indicator of how cautious traders are, Fear & Greed has plunged to rare lows last month, at just 9/100.

Although its score has almost tripled since then, there is still a feeling of “extreme fear” among market participants – meaning that there is enough potential for large price increases.

Conclusion

This is worth watching this week. We’ll see what this week brings us and whether sentiment in BTC reverses.