This week is about to get chaotic due to the Democrat transition in the United States, and Bitcoin (BTC) will follow the two-month presidential transition. What’s next? Let’s take a look at 5 factors that could influence BTC price action over the coming week, besides the European spreading coronavirus lockdowns.
U.S. election already influence the market
The market volatility occurred immediately as the results were announced, as experts warned everyone. Japan stock market hit a 29-year high while BTC/USD stopped short of continuing last week’s gains and even hit $14,400 — $15,900, now circling $15,250.
BTC/USD 1-week chart. Source: TradingView
Analysts are still arguing that in the long run, Bitcoin and gold as safe havens and will win from the election. Of course, the main reason is inflation. According to Michael Saylor, CEO of MicroStrategy, “Bitcoin is a dominant crypto network - engineered to host the safe-haven asset & preserve monetary energy over long periods without power loss,” summarized in a tweet on Monday.
Coronavirus massive lockdowns in Europe
Europe and the U.S. have recently is forced to new lockdown measures that have met with considerable pushback from the population. This situation opens up the possibility of a crypto crash from March this year, repeating itself for Bitcoiners.
Despite the government’s controversial responses to the virus, analysts are forecasting a strong year for Bitcoin in 2021. They even are very optimistic about a new all-time high for BTC by Q1 next year.
Fear & Greed Index show you the danger zone.
The current investor sentiment is at its low because Bitcoin stays above $15,000. In the Crypto Fear & Greed Index, show you that the index reached now the highest reading since June 2019 on Monday — the time when Bitcoin circled its yearly highs of $13,800. “The new levels to watch are $13,700-14,100, $12,800-13,200 and $11,500-12,000.
Crypto Fear & Greed Index historical chart. Source: Alternative.me
Record-long BTC gasps.
Despite the volatile conditions of the past week, Bitcoin closed Sunday with its third-highest weekly close in history. Bitcoin has traditionally risen or fallen from its Monday position. This weekend provided a small gasp, between $15,455 and $15,635, and BTC/USD moved quickly to fill it in early Monday trading.
CME Bitcoin futures chart showing the latest gap. Source: TradingView
Bitcoin supply shortage boosts opportunities.
Bitcoin’s whales wait patiently for a $16,000 price for BTC. All the recent events predict further price rises based on a surprisingly simple equation — supply and demand.
The wave of corporate buy-ins and increased sales from heavyweights point the attention towards the fact that there is just not enough BTC on the market to satisfy incoming demand.
Analysts say that the situation will likely be exacerbated by PayPal when it begins offering cryptocurrency facilities early next year.
The fact that Square buys more BTC than miners produce could result in driving up the USD value of a Bitcoin.
The opportunities are more towards positivity no matter what point of view you are looking at. Waiting, mining, trading, or investing - the chance is yours to investigate and profit.