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BTC price nears $60K showdown: 5 things to watch in Bitcoin this week

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Bitcoin (BTC) is challenging at the start of the new week, rising to $ 59,000. After an unexpected rally on Friday, the largest cryptocurrency was slowly declining. However, on Sunday, BTC again approached $ 60,000.

Will it be able to keep growing for much longer?

In Bitcoin circles, the main topic of conversation, of course, remains the events when there was a sudden drop in sales.

Opinion is divided between those who regard volatility as “commonplace” and more conservative voices calling for the latest bullish outlook. The suspicions are related to the power outage in China that hit the hash rate, as well as rumors of US regulatory lawsuits against unnamed financial institutions related to money laundering. In his own analysis of what happened, popular statistician Willy Woo singled out both China and the reckless actions of futures investors that contributed to the losses.

However, experts note that a new sustainable growth potential may appear in the future.

Five factors that affect BTC price increases

Bitcoin ignores DXY gains

Asian stocks have recorded losses caused by various problems, including the ongoing COVID-19 disaster in India.

Unlike other markets that reacted poorly to these rumors, as we see, BTC, on the contrary, showed growth. At the same time, the US dollar currency index (DXY) also showed impressive growth after a month of decline. Perhaps DXY and Bitcoin are tending to correlate again?

Spot rally enters next stage

A very short time after falling to almost $ 46,000, the BTC price is recovering and showing good growth. As such, the appetite for Bitcoin could well see a new bullish phase.

Cat and mouse with Ethereum

Is Bitcoin playing catch-up with the price of ETH? Ethereum is now over $ 3,000, up 28% over the past week, up from 11% for Bitcoin. This further reduced the impact of Bitcoin’s market capitalization. However, experts predict rapid growth in relation to BTC.

Fundamentals flush out hash crash

The decline in the price of BTC in the past few weeks has occurred against the backdrop of some “reboots” (for example, a short-term drop in the hash rate due to the flooding in China). Consequently, now the price goes to recovery.

Greed is back on the market

With new profits, market participants become greedy. A few weeks ago, when the BTC price was at its lowest in recent weeks, crypto market participants rushed to buy digital assets. However, “extreme greed” has not yet arrived, even with today’s price, sales remain at a fairly high level.

Conclusion

BTC has entered a growth phase again. The long-term optimistic case for BTC is strong, Bitcoin is attractive like never before. So today we see the first major resistance after the correction, which approached the level of $ 59,000, if we take this height, then the next target is $ 60,000. And new heights are not far off.

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