According to William Suberg at Cointelegraph, there are a number of things that could impact on the price of bitcoin this week, including the fact that the price of oil is at an all-time low, and despite the fact that millions are currently unemployed.
As the article points out, bitcoin is maintaining a price at around $7,000 on 20th April, “despite strong resistance on April 20 as oil crashed through fresh support levels towards $10.” It adds that this is going to be a “choppy week” for traditional markets, but if you are a bitcoin price follower, here are five things to look out for during the next few days.
This week has begun quite calmly for bitcoin, especially as there are often sell-offs over the weekend. This doesn’t appear to have happened and the BTC/USD price “lingered inside a $300 corridor over the weekend.”
Bitcoin has now maintained $7,000 support since 16th April, although analysts warn, “year-to-date resistance and the 200-day moving average both present barriers to further growth.”
Cointelegraph Markets analyst Michaël van de Poppe predicted today, “Breaking and flipping the yearly level and I assume we can continue towards $7,600.” We can also see that as last week ended, the cryptocurrency moved above the 50-day moving average, flipping previous resistance.
The oil markets are something to watch. The last time such prices ($10-$15) were recorded was in 1999, while a $10 price tag was rarely seen on market closes even then — since 1987, a close of $10.82 formed the record low. “No one wants oil right now,” Bloomberg announced, and even Trump is resigned to it falling into single-digit territory.
Furthermore, despite millions of Americans being unemployed and relying on government payouts, the value of stocks is rising. For example, a basket of stocks known as FANGMAN — Facebook, Amazon, Netflix, Alphabet, Microsoft, Apple, Nvidia — traded just 7% below its all-time highs as the week began. Bitcoin supporter Max Keiser argued that this represents the illicit transfer of wealth away from workers and companies to banks and the state.
The bitcoin halving is also just three weeks away, and analysts believe this will have a positive effect, while Bitcoin’s difficulty adjustment feature means it will become 8.5% more difficult to find new blocks. This is a rare uptick and a big one, interpreted as a bullish sign by some analysts.