US dollar strength mimics 2020 Coronavirus crash — 5 things to know in Bitcoin this week
Bitcoin (BTC) starts a new week with all quiet on traditional markets but a storm brewing in crypto.
As the Easter long weekend continues for the United States and much of Europe, traders are keenly eyeing whether Bitcoin can stay stable for four days without professional investor involvement.
So far, the picture has not favored bulls — since Good Friday, BTC/USD has been characterized by sideways action punctuated by episodes of sudden volatility to the downside.
That continued overnight into Monday, and now, $40,000 is once again out of reach. What will the atmosphere be like in the coming days?
Cointelegraph takes a look at the potential market mover factors in line to influence Bitcoin price performance this week.
It’s a frustrating time for Bitcoin spot traders. Without traditional market guidance, Bitcoin faces four days of “out-of-hours” trading, meaning that liquidity is thinner than normal.
This has a habit of making any sudden price moves ripple out and cause large than normal knock-on effects.
Should buyer support at a specific price be pulled, for example, panic can set in more easily when there are fewer participants — and less cash — on hand to mitigate it.
Such a scenario has played out several times over the Easter weekend already. While mostly trading sideways, BTC/USD saw episodes of sudden downside from which it struggled to recover.
Overnight on Sunday, the market dived over $1,000 in a matter of minutes, including an $800 loss in a single one-minute candle.
With it came the loss of support at $39,000, data from on-chain monitoring resource Material Indicators confirms.
On Friday, Material Indicators noted the block of buyer support immediately below spot price, this now absent and potentially opening up the
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