Bitcoin outlook: What investors should keep an eye on this week
Stricter lockdowns and announcements in Europe by the US Fed could influence the price of Bitcoin (BTC) this week. Analysts are pointing out a high participation of investors taking profit at current levels.
After regaining the important range at $19,000, Bitcoin seems to be behaving as it has for the past few weeks: taking daily gains and then retracing. Accordingly, some analysts wonder if the recent price spike was a sustainable “weekend rally” or a bear trap.
At the time of publication, price of Bitcoin stands at $19162 with a sideways movement in daily and weekly graph. In contrast, the monthly chart is showing a gain of 17.60%. This places Bitcoin among the 5 currencies with the highest gains in the top 10, surpassed by Ethereum (23.42%), XRP (88.93%), ADA (43.74%) and Litecoin (24.20%).
Trader Michaël van de Poppe, known as “Crypto Michäel”, indicated that there are similarities between the current price hike and the previous months just before Bitcoin reached new highs. The cryptocurrency is at a “potential bullish” momentum, therefore, investors should look closely at the $19,600 resistance and expect a flip to support as the price rises to higher highs in the range near $20,000, as the analyst is showing with the chart below.
However, the trader also advised for caution in the coming days. There are key events that could negatively influence the crypto market. Measures to control Covid-19 could have a similar, though smaller impact than before when the crypto market crashed. Investors may prefer to move funds to more liquid mediums of exchange, as van de Poppe said:
Regardless, my interests are in the price action coming week. Multiple concerns are surrounding the markets; Brexit negotiations, but also stricter lockdowns in Europe. Fear starting to take over and cash is king? we’ll see