Bitcoin price records its third week of soaring, with gold falling to four-month lows. The first weekend of August also passed over $45,000 as the bulls expected, and BTC bulls are now counting on the tick. Here are the 5 factors that analyst “William Subarg” expects to affect the BTC price:
Decisions will be made tomorrow for its infrastructure
As last week, US lawmakers continue to scrutinize cryptocurrencies. Reportedly, the infrastructure bill is still under fierce debate and is expected to be put to a vote on Tuesday. Of the $1 trillion to be cut, there is also a $30 billion cryptocurrency issue aimed at overhauling tax liabilities for businesses. Industry anger is being sparked to the extent that even US senators are putting changes on the table to change the language of the bill. In this regard, the statements of Sam Bankman-Fried, CEO of crypto money exchange FTX, and his tweets recorded on Sunday are as follows:
The first thing cryptos had to do here was make sure Washington was aware that there was a provision in the bill that needed clarification. This was successful!
At the same time, Sam Bankman-Fried said the following in a series of tweets on Sunday:
Washington knows all too well now.
Meanwhile, cryptocurrency markets may remain susceptible to rumors and general speculation until the bill is finalized. CEO Bankman-Fried concluded that any return from the cryptocurrency space should be constructive, tweeting:
But basically: the biggest thing right now is not “voicing” for crypto. It’s about stepping forward with reasonable, good-willed concessions and making it clear that that’s the goal.
Bitcoin rises, gold drops to 4-month lows
Besides the decisions of the legislators, the general macro environment also presents a chaotic outlook for Bitcoin. After an early decline in precious metals gold that started with a padollarama on Monday, the stocks range is not impressive and experts think gold could be put forward as a way to explain the decline in the crypto markets. During this period, gold fell sharply after starting at $1,763. Afterwards, it rallied as high as $1,686 before recovering. It capitalized on losses on Friday and recorded its lowest level since late March. The price of gold and crypto, which generally moves in parallel, did not go unnoticed by Bitcoin advocates as the pair collided. A tweet by Carlos Gomez went as follows:
Gold: Bitcoin is volatile and cannot hold value.
Investor and podcast host Anthony Pompliano said, “We will monitor the contraction in the market value of gold in real time over the next ten years.” Others noted the correlation between Bitcoin (BTC)’s superior performance and US Senate progress, implying that the tide could yet turn.
Forecasts for Bitcoin are positive, resistances are breaking
On the technical side, Bitcoin has been giving signals that the bulls are strong, especially in the last few days. It managed to climb above $45,000 over the weekend and is currently hovering between $44,900 and $44,700, an acceptable level. The weekly candle is also up by $4,000.
Rekt Capital, whose analysis we share as , announced this week that BTC has completely broken off from the levels in the past months. The analyst’s technical comment was as follows:
BTC retraced the 200-day EMA as support, a long-term indicator of investor sentiment. BTC also retested the 21-week EMA as support, a time-tested “Bull Market” indicator. It’s been a great week.
Analisdollarser has been interested in these levels for a long time and Bitcoin was struggling to stay above the resistances. For example, the buy and sell levels among traders on Binance show the extent of the support/resistance “turn” now taking place. Sellers settled above Sunday’s highs while bitcoin held solid support at $41,500. Michaël van de Poppe’s statements for BTC and ETH are as follows:
We are very interested to see if the next week will be another green week or a healthy correction for Bitcoin and Ethereum.
Mining difficulty approaches record increase
As the difficulty of Bitcoin mining increases, this week is definitely going through the Bitcoin fundamentals. After switching between two and three digits, hash rate estimates now accurately indicate hardware dependence on Bitcoin at over 100 exahash per second (EH/s). Additionally, miners leaving China are moving to new regions, pointing to a strengthening mining pattern, which is likewise supported by hardware shipped elsewhere. In this regard, analyst Willy Woo reported that in on-chain analysis since mid-July, the price will follow the hash rate. Woo explains:
Fundamentals do not predict short-term price, but given enough time, price discovery returns to fundamentals. With the dwindling BTC supply, my estimate for BTC is over $53,000.
Crypto Fear and Greed Index quickly turned into “greed” over the weekend. The index takes factors from a basket of resources into account to compile an index between 0 and 100 for the cryptocurrency as a whole, with 100 being the maximum greed. Meanwhile, the correlation between price and market sentiment may be cause for more alarm among bullish prospects. Sunday saw the Index hit 74, capped by “extreme greed,” despite a relatively modest $5,500 rise for BTC over the week. “This is an Extraordinary 3-Month High,” said investor and analyst Vince Prince at the pace of change. Additionally, the index has recovered in line with the price and is back at 65, still referred to as “greed”. Finally, during the peak of bull runs, 95/100 scores were emerging. This region aligns with subsequent declines.