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BTC delights bulls entering the new week after closing a weekly candle in which BTC won another $ 4,000 – will it hold on? After spending most of the previous seven days reaching local highs, but then declining from them, sentiment over the weekend was quite mixed. In the end, Saturday and Sunday turned out to be exactly what the bulls had been waiting for, and BTC crossed several resistance lines and continued up to $ 45,000.
Tuesday D-Day for the Infrastructure Bill
Like last week, the specter of United States lawmakers hangs over the cryptocurrency industry on Monday. The infrastructure bill, as it is informally called, is still attracting heated debate and is expected to be voted on Tuesday.
The $ 1 trillion bill also raises the $ 30 billion cryptocurrency issue, which seeks to review corporate tax obligations. This has caused a stir in the industry, even to the point that US senators have tabled amendments to change the wording of the law.
Gold reaches 4-month lows
The overall macro environment represents a mixed outlook for BTC. The shares are insignificant after the morning drop in precious metals began on Monday with an unexpected sharpness and could to some extent explain the decline in cryptotrises.
After starting at $ 1,763, gold fell sharply and even fell to $ 1,686 before recovering, taking advantage of Friday’s losses and reaching its lowest level since late March.
BTC price action overcomes resistance
In this context, BTC in particular has been doing incredibly well in recent days, to the displeasure of all bears. Over the weekend, Bitstamp rose to a high of over $ 45,400, a turning point before a relatively slight correction to around $ 43,500.
Recently, this level has still been the focus, with BTC / USD sealing the weekly candle to almost $ 45,000.
These averages used to worry experts as BTC sought to make progress for most of last week. A look at the buying and selling levels between traders, for example at Binance, now shows the extent of the “rollover” of support and resistance that has taken place. $ 41,500 became solid support, while sellers settled higher above Sunday’s highs.
The difficulty is approaching a record increase of several months
Among the basic BTC indicators, the celebration is definitely continuing this week – the hashrate and difficulty have made rapid progress upwards. After switching between a two- and three-digit number, the hash rate estimates now show BTC’s hardware dedication just above 100 EH / s.
Monday’s figure of 105 EH / s is more than 20 EH / s above the June lows and approximately 63 EH / s below the historical highs. The difficulty, which experienced the first positive readjustment in two and a half months at the end of July, is ready to overcome itself in just three days and jump by more than 7%.
The market is already flirting with “extreme greed”
In the meantime, the correlation between price and market sentiment could give more cause for concern to those who are betting on sustainable growth. The index of fear and greed in cryptocurrencies, which was in “neutral” territory a few days ago, quickly turned into “greed” over the weekend.
The index of fear and greed takes into account the basket of resources and compiles an index for cryptocurrencies as a whole in the range of 0 to 100, where 100 means maximum greed. Index reached 74/100, which borders on “extreme greed”, although BTC / USD rose by a relatively modest $ 5,500 during the week.
Conclusion
Definitely this week starts positively. And perhaps, despite some clouds, it will continue to be positive.
