bitcoin (B T c) A new week begins on a happy high thanks to a boost from a familiar source, Elon Musk. Are the good times back?
After spending weeks near $30,000, bitcoin has managed to make a sustained return to attack key resistance.
With on-chain indicators flashing bullish, a breakout could be a possibility, but analysts and traders are not 100% convinced.
Cointelegraph takes a look at five things that could affect BTC’s price action in the coming days.
Musk’s Tweet Changed The Game… Again
the talk of the town, once againElon Musk is the CEO of Tesla and SpaceX this week.
Strongly out of favor after playing the Devil’s Advocate on Twitter on several occasions, Musk returned to the fray with news that was unlikely before.
Tesla quit earlier this year shortly after announcing bitcoin payments and without actually processing any BTC transactions. This, according to Musk, was due to the allegedly inappropriate energy use involved in mining.
Widely criticized for both his argument and its impact on bitcoin price action, Musk did not give up, with subsequent tweets on various aspects of bitcoin and altcoins producing clear but comparatively silent price movements.
Now, it appears that the self-proclaimed “technoking” has changed his social media approach once again.
Responding to a complaint by Magda Wirzyca, CEO of financial services company Signia, he once again opened the door for Tesla to adopt bitcoin. Vierzica was critical of Musk’s bitcoin influence. Covered by Cointelegraph last week.
“When reasonable (~50%) clean energy use by miners is confirmed with a positive future trend, Tesla will resume allowing bitcoin transactions,” Musk reacted, adding that Tesla still had 90% of its initial $1.5 billion BTC purchase.
BTC/USD liked the news, climbing above $39,000 to seal a daily gain of over 12% at the time of writing.
Indicators generate mixed narrative
as Cointelegraph Reported Over the weekend, the bulls case is being supported by several on-chain indicators.
Covering price versus active addresses, spent output profit ratio (SOPR) and stock-to-flow, analytical tools strongly point to an undervalued bitcoin at current prices.
As such, short- to medium-term return predictions are creeping in – a $85,000. call for In the coming months, while stock-to-flow model maker PlanB still believes $100,000 this year is an appreciable one.
Meanwhile, on Monday, there are two other charts to consider – and one is going to come up less frequently than the other.
as famous By PlanB among others, bitcoin’s mempool has seen a major reset this month, meaning transactions are currently extremely cheap versus expected processing times.
Not only is this a “great time” to reorganize and consolidate your BTC wallets, but Cane Island Alternative Advisors investment manager Timothy Peterson argues that the mempool is now back where bitcoin hit its parabolic growth in late 2020. was started.
“Bitcoin is a good indicator of a mempool bubble,” he summarized series of tweets on Sunday.
“The mempool is where pending transactions wait to be processed before being added to the blockchain. This week it is cleared for the first time since November 2020 (pre-bubble).”
Continuing, he cautioned that the lack of demand that indicates an empty mempool means that price action should “reduce” in the coming months.
Meanwhile this lack of demand has become clearly noticeable on exchanges. As highlighted by on-chain monitoring resource Cryptoquant, both inflows and outflows from exchanges have decreased significantly.
conflicting sentiment in sentiment $BTC Negatively impacts withdrawals and deposits from exchanges
– decreasing inflow addresses
– Outflow addresses are falling and are hitting a 1-year low of 15.5K . have reached
— CryptoQuant.com (@cryptoquant_com) June 14, 2021
The fight for $40,000 continues
Traders who woke up on Monday will be particularly interested in a level thanks to bitcoin’s latest run-up.
After waiting for a decisive move during weeks of price compression, there is now a real chance that they will see an attack on $40,000 and potentially more.
This in itself would be significant – estimates largely call for lower prices in the near-term before a rebound, but bitcoin has so far refused to conform.
Popular Trader Crypto Ed. “I should do 1 more leg up before hoping for some improvement” said Monday morning.
“For now I only see intraday trade set up on low TF.”
He added that he would wait for lower levels to hit before a potential entry trade, but in the meantime, BTC/USD could hit $47,000.
Shorters came in for the joke, with Crypto Ed noting that many would already be in losses or liquidated against a backdrop of bullish sentiment and MicroStrategy buying another $500 million of BTC.
“How does it feel? To be underwater in her tiny position and feel like Sailor is ready to go on a new $500mm shopping spree? She couple, referring to the company’s CEO Michael Sailor.
At the time of writing, BTC/USD is trading near $39,500 after reaching a local high of $39,783 on Bitstamp.
Fundamentals reveal miner clutter
Meanwhile, away from on-chain, bitcoin network fundamentals look a little less solid.
As the bitcoin energy debate intensifies, miners in particular face pressure from China, where a shake it Who is allowed to do mining using local energy?
Some see this as an action and even a ban on bitcoin’s major mining power source, while others argue that miners, as usual, will only adapt to changes and move elsewhere. . This could result in the transfer of hash rate dominance to another jurisdiction.
El Salvador, the first country in the world to make bitcoin legal tender, is already working on its own geothermal mining facilities, becoming the latest party in the so-called bitcoin hash war.
However, so far the trend is low. According to monitoring resourceBitcoin’s hash rate is declining, with 10 exhash per second (EH/s) wiped out in recent days.
Since the hash rate is an estimate, different sources have different numbers, with the current 113 EH/s representing about two-thirds of this year’s all-time high of 168 EH/s.
Meanwhile on Sunday the difficulty decreased by 5.3% one more drawback On the card for the next automatic adjustment in two weeks’ time.
Volatility says is not in the top
Finally, for a hedge fund manager, there is still no sign of a bitcoin price top.
Dan Tapero, founder and CEO of DTaP Capital, along with data from Bloomberg Intelligence, suggests the volatility is too low to suggest that it is a local range.
“Bitcoin has never been on top with such low volatility. Huge surge is yet to come. Twtr shut terms are very negative,” he said in part of a twitter discussion on Monday.
He added that corporate adoption in the United States was “unlikely” despite the sales and microstrategy, but bitcoin was still “the biggest macro event ever”.
Apart from this, countries like El Salvador have a lot of potential for cheating.
Tapiro drew attention to Bloomberg’s claim that $100,000 would be an “short” target for BTC/USD in 2021.