Five Aspects to Pay Attention to Right Now

Colin Baseman

Stocks as well as oil contrasts along with booming gold will surely provide upside for the cryptocurrency. However, we should admit that fundamentals still need picking up.

The third week after the great even has started. The crypto is only five hundred and fifty USD away from five digits. Analysts wonder if there are aspects that will influence price in the nearest few days.

Specialists analyze the tendencies and study factors that may look helpful or, on the contrary, harmful.

BTC’s Stability VS Stocks and Oil Contrast

The start has been rough so far. The political life of the USA has impacted the entire industry and made people worry.

The current unstable situation does not mean assets will quit rallying. Gold has grown fifty USD in the past three days. The things happening to oil will look attractive to crypto miners.

The cryptocurrency has demonstrated ‘decoupling’. It has all tendencies to follow gold. Statistics present that BTC has provided returns of around fifty percent in the second quarter only.

BTC quarterly returns. Taken from Skew

Adjustment Is More Difficult Than Expected

Data shows that all things are equal. At the same time, BTC still experiences a downward difficulty while trying to adjust in the past three days. One of the crypto’s network features that are essential is that it can motivate miners to take part in transaction validation. 

The mass media outlets mentioned that BTC hasn’t had this kind of adjustment for over two years. Last time its bearish market showed similar trends in 2018.

BTC hash rate estimate 1-month chart. Taken from Blockchain

The rate is moving up. Yesterday it reached ninety-five quintillion hashes/sec. Analysts predict that in the short-term this adjustment might continue this trend.

Miner sell-offs recede

The Decreased Numbers of Rell-Offs

April’s event cut miners’ crypto revenue by fifty percent. Later, outflows started gaining speed. During that period, participants sold more crypto than they managed to earn.

The past ten days have shown a different image – now we see that there was a dramatic decrease in outflows.

BTC mining pool outflows a 1-year chart. Taken from CryptoQuant 

Consumer activity and their unwillingness to sell may look like a coincidence. Recently, miners have performed more withdrawals than during any other period since 2018.

Around sixty percent of the crypto’s supply hasn’t moved in the past year or longer, although price fluctuations were obvious. Analysts are trying to explain the phenomenon and believe that what they see proves that the market expects a bull run.

The Price with no Futures Gap

Analysts do not see any futures gaps that the market needs to push the price. The more reduced the gap remains, the less chance it gives for the price to move. In turn, BTC cannot now fill the gap. Specialists mention that BTC/USD compensates for the gaps we have in futures. The same happened in the past ten days. Smaller as well as larger gaps filled within days of opening. 

CME Bitcoin futures. Taken from TradingView

The Latest Flow Raises Excitement

The BTC’s focal price point is nine thousand five hundred USD. This is what analysts predicted. The stock-to-flow price pattern demonstrates what is occurring, which is trustworthy and accurate data.

Monday generated an important ‘red dot’ on the pattern. This might once again signal the beginning of a bullish cycle.

Each of such stages raises the price. Some predict that in another four years highs will reach five hundred and seventy-six thousand USD or even more.