Cryptocurrency

Here are 5 Things Bitcoin Investors Should Watch This Week

Bitcoin (BTC) enters a new week with moderate price action and optimistic fundamentals. BTC is changing hands at $31,307, with a loss of 1.7 percent in the last 24 hours. So, what developments could affect the price of the leading cryptocurrency this week?

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US dollar gains strength

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The US Dollar Index (DXY) briefly rose to 93. DXY is known for its opposite correlation with Bitcoin, and for this reason it remains the center of attention for some. The short-term peak of the index may mean price pressure in the BTC/USD pair. On the other hand, the gathering of the working cluster established by the US Fed for stablecoins for the purpose of working in-house is also in the middle of important developments.

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What are the expectations in Bitcoin price?

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BTC, which could not pass the $ 32,000 resistance at the weekend, is still in a narrow range. “It is time for a green week for Bitcoin,” said Michael van de Poppe, a renowned analyst. Van de Poppe argued that the base level may not be as dramatic as expected. He also states that “a bad weekly candle does not mean that prices will fall further”. Cryptocoin. com

As we previously reported as , Sunday’s BTC/USD close was the lowest weekly close of 2021. Rekt Capital, on the other hand, says that recovering $32,000 is a problem in itself and opens the way to $29,000 levels.

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How are things with Bitcoin fundamentals?

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Bitcoin’s network fundamentals continue to gain strength in the wake of unprecedented events in May and June. The hash rate, which remains above the local low of 83 exahash per second (EH/s), has not had a bigger problem as miners move away from China. The automatic difficulty setting, which took place this weekend, saw a 4.8 percent decrease. Two weeks ago, it was assumed that the difficulty would decrease more than ever – almost 29 percent.

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The last two things to consider: Funding rates and shorts on Bitfinex

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Funding rates on the stock market remained neutral and slightly negative pending the recent price action. But the volume remains relatively low. Both futures and PayPal volumes decreased significantly, with the former returning to levels at the end of last year. On the other hand, short selling on Bitfinex, which is thought to be the driving force of the short-term volatility witnessed in the past weeks, has decreased.

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https://twitter. com/VailshireCap/status/1416822777978359810

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