Bitcoin Will Have ‘Biggest Week of the Year’
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Bitcoin remains in a negative spiral and has been trading sideways since the fall of FTX. The crypto asset has been reluctant to break out of the range it has been trading in for some time. Furthermore, while the current trend continues, BTC miners are still facing more difficulties.
Despite this, analysts are confident in bitcoin’s ability to recover. 5 things should affect the price of BTC in the next few days.
Expected directions of the consumer price index
The first factor that can affect the price of Bitcoin is the consumer price index. It’s a tool that makes it possible in the US measure price inflation every month. Everyone is eagerly waiting for the results of the next edition, which will take place on December 13. Analysts predict that A Santa Claus rally may occur within the last two weeks of 2022 after this publication.
Therefore, this report is important for the Cryptocurrency market. In addition to, The Federal Reserve will decide on interest rate hikes at the same time, it envisages possible changes depending on the statements made by its president, Jerome Powell, in his traditional speech.
As noted by Material Indicators, the week promises to be full of events. The analysis company thinks soWe need to pay attention to the CPI report and interest rate hike on Tuesday, as well as today’s Fed speech on Wednesday.
Other observers believe that these events will change the course of the market. MisterSpread I think it’s probably the most important week of the year. According to QCP Capital, the next CPI report will be the biggest since the market has been rallying for 2 months. So there is no doubt that CPI can affect market volatility. According to FedWatch tool From CME Group, the Fed is highly likely to decide on a 50 basis point rate hike.
The price of BTC does not fluctuate much
BTC/USD exchange literally is influenced by macroeconomic events from the last days. It is trading at around $17,000, according to data from TradingView and Cointelegraph Markets Pro. Thus, there is no major change in the price trend of the BTC/USD pair.
Some analysts were more pessimistic about Bitcoin’s near-term future. For example, Profit Blue reported that BTC will continue its descent to $10,000 before the start of 2023..
The US dollar may rise further
Trader Bluntz thinks that Bitcoin could begin a downward trend again at the end of the year. Because, The US dollar is expected to strengthen in the coming days.
In effect, The US dollar index (DXY) recorded higher lows on daily time frames last days. This indicates a possible renewed strength of the dollar, which will be a big problem for the crypto sector due to the inverse correlation.
The supply shock ratio is approaching a 10-year high
Bitcoin isn’t on the verge of going down completely, and there are still a few signs that it could go up again. According to the Liquid Supply Shock Ratio (ISSR) metric, Bitcoin can bounce back from a supply shock at any time.
This metric measures the ratio of BTC supply to demand at a given time. After the evaluation last December 10,ISSR was 3,557. This is the highest since August 2014.
Arthur Hayes downplays the impact of BTC sales by miners
There is Arthur Hayes, the former CEO of BitMEX commented News about the importance of Bitcoin miners and their impact on the industry. According to him, the bitcoin community should not fear the increase in BTC miner sales potentially flooding the market with liquidity.
Hayes believes that “even if miners sell all the bitcoin they produce every day, it will have virtually no effect on the markets“. The reason is that the market easily accepts this kind of selling pressure, because this is not the first time.
He actually thinks most BTC sales by miners and centralized lending companies have already been completed. If there was still talk of selling his BTC tokens, it would have already happened. On the contrary, according to data from Glassnode, sales are slowing down.