Bitcoin (BTC) is riding high on a wave of positive sentiment as it prepares to take on $50,000.
After a volatile weekend which saw a new all-time high, expectations are putting Bitcoin back in the spotlight as a fundamental level comes into play — what’s in store?
Cointelegraph considers five factors which could serve to move the market in the coming days.
Stocks gain while the dollar dives
Stocks are climbing, building on a record-breaking rally which has seen many indexes already shoot higher than ever.
Despite warnings that the good times may soon end, including from Warren Buffett’s market indicator last week, markets began Monday in the green.
Japan’s Nikkei touched 30,000 points for the first time since 1990 on 1.6% growth.
At the same time, the strength of the U.S. dollar continues to falter. The U.S. dollar currency index, which measures USD against a basket of trading partner currencies, abandoned its latest attempt at a rebound over the weekend to test support at 90 once again.
The index has been in a bearish mood for much of the past year, and Bitcoin has in turn gained from periods of express weakness and seen a retreats during trend-bucking comebacks.
Long term, however, central bank money printing is ensuring that in many jurisdictions, the economic environment does not revert to its former character any time soon.
Responding to a Valentine’s Day post from the European Central Bank (ECB), Saifedean Ammous, author of the popular book, “The Bitcoin Standard,” had little sympathy. The institution had promised to “keep financing conditions favourable ‘Til the crisis is through.”
“This is why fiat people spend their pathetic lives hyperventilating over one imaginary crises to another,” he responded.
“Lots of brrrrrr to be made whenever there’s crisis!”
$50,000 or not $50,000? That is the question
When it comes to Bitcoin specifically, it’s (mostly) about the short term for investors this week.
One event in particular — how and when the largest cryptocurrency will break $50,000 — is a talking point across the industry.
The weekend produced a concerted effort to crack the latest psychologically significant level, with a classic “out-of-hours” bout of volatility producing new all-time highs of $49,714.
With sellers lined up at the final hurdle, however, $50,000 eluded the bulls and BTC/USD retreated lower before continuing to consolidate at around $47,000.
“Huh? #Bitcoin market doesn’t go up in a straight line?” an unsurprised Cointelegraph Markets analyst Michaël van de Poppe summarized on Monday.
Van de Poppe had frequently warned that Bitcoin’s vertical upside could not sustain without multiple, and sometimes intense, pullbacks.
In his own forecast, meanwhile, fellow analyst filbfilb produced a new chart with a…