Bitcoin is about to start a new week as a firm depending on the source, so what happens next?
After an uninspiring price performance, the largest cryptocurrency is still in the lower range of $30,000.
With the upcoming summer months that are traditionally good for bulls besides inflation that worries traditional markets, there might be cause for optimism. In terms of Bitcoin, anything might happen. However, changes swing both ways.
It’s a day for commodities and stocks because of the holidays in the United Kingdom, in the United States, and the West.
Asian markets are primarily stable as traders start to gear up for the beginning of the slower summer period. However, the picture gets less steady. Sources are telling mainstream media that the reason is inflation.
Substantial central bank fuelled a concern on the global rebound from the coronavirus. Therefore, the long-term impact of recoveries in the world appears on the horizon.
An equity strategist at JPMorgan Asia, Mixo Das, told Bloomberg that policymakers committed to accepting higher volatility in inflation and a higher level of inflation. So the inflation will continue to move structurally higher.
Inflation is the antithesis of a Bitcoin standard by its nature which nothing can manipulate.
Therefore, the demand from institutions should continue to expand in line with inflation. Central banks are increasingly tolerating this idea at higher levels.
Earlier this month, in a debate on Bitcoin’s energy usage, the author of The Bitcoin Standard, Saifedean Ammous, suggested that inflation eradicates about 11% of global wealth every year.
Details about the current situation in the crypto market
On Monday, there was a gloomy picture for Bitcoin holders as this weekend failed to produce any signs of a price rebound.
At the time of writing this article, BTC is under $35,000, downward since hitting local highs of $41,000 last week.
According to new data from Glassnode, old hands add to their Bitcoin stack while buyers continue selling them.
This classic direction is nothing new, but it is increasing dramatically.
Key price averages cause uncertainties for bulls
The 200 DMA now sits at just above $45,000, where last week BTC saw rejection while the 20 WMA was higher at near $48,000.
DecenTrader summarized that Bitcoin should find sufficient demand in the low 35s, and the 20 WMA should act as resistance. Also, a lower drop would likely make the low of $24s or the 78.7% retracement.