Here Are 10 Things That Will Impact Bitcoin, SHIB and Altcoins This Week!

Bitcoin is starting a new week. After a quiet weekend, BTC quickly settled above $19,000. Despite invitations to work on the next rally and lower macro bottoms, the pair has now made no decision on a trajectory. So what will affect Bitcoin, SHIB and altcoins this week? Here are the valuable developments…

What does spot price action indicate?

For Bitcoin traders, the BTC/USD weekly chart is “almost too quiet” to speak of. Significantly lower in volatile conditions in the first half of 2022 has seen an almost alarming lack of volatility in recent months. Bitcoin historical volatility index (BVOL) is at lows that have only been seen a few times. William Clemente, co-founder of research and trading firm Reflexivity Research, said this indicates “Bitcoin is experiencing a massive volatility squeeze.”

Economist, trader and entrepreneur Alex Krueger also noted that after macro lows in BVOL comes an explosive move. He argued that US macro data would exacerbate volatility again. Not that Koindeks.com As we have also reported, the numbers were well below the trigger range. “Historically speaking, when BVOL drops below 25, it tends to have a massive spike in volatility shortly after,” crypto research firm Delphi Digital wrote in part of its Twitter comments.

For everyone, the question remained which side of the volatility would take the market. Expectations remained the same for trader Provincial Capo of Crypto, who predicted Bitcoin’s decline from its all-time high to $20,000. According to the analyst, $21,000 should only be a module for a relief bounce that will be overshadowed by a fresh dip to multi-year lows for BTC/USD.

New macro triggers are next for BTC, SHIB and altcoins

Little is expected from the US Federal Reserve in terms of direct policy changes this week. But there are still many factors that will affect crypto volatility. In the US, tech shares are particularly prone to move markets if results exceed expectations, while corporate profit calls will come slowly and quickly.

While Fed officials commented on overall policy, more US data announced that it would join the profits invitations this week. Beyond equities, the US dollar index (DXY) has entered the new week sluggish. He avoided another attack on twenty-year highs. Michaël van de Poppe, founder and CEO of trading firm Eight, hinted that there may be a broader “some relief” for risk assets this week or next. He states that BTC should break $19,400 and $19,600 clearly. In terms of DXY’s structure and returns, he thinks volatility will kick in in 1-2 weeks.

RSI information reflects 2018

Moreover, the photo for Bitcoin is getting darker. Those presenting downstream scenarios from the available chart information are busy making comparisons to the bottom of the 2018 bear market. In the middle of them is popular analyst Matthew Hyland. In a tweet this weekend, Hyland marked the repetitive behavior of Bitcoin’s rising relative strength index (RSI) in 2018. The chart clearly shows the familiar bear market forces at play. This has raised doubts about whether we will see the movements of four years ago in the fourth quarter of 2022.

The 2018 RSI breakout structure included a drop from $5,500 to $3,100 for BTC/USD. So it marked a decrease of about 40 percent. “Obviously, we’re still waiting for this big breakthrough to come,” Hyland added. He also points out that the classic Bollinger Bands volatility indicator signals a storm.

What is the behavior of investors?

A look at Hodler’s behavior reveals that the stability of the average long-term trader (LTH) remains stable. The latest data from analysis firm Glassnode confirms that the number of Bitcoins lost in cold storage or going out of circulation is at a five-year high. According to the platform, the “Hodled” or “Lost Coin” metric reached 7,554,982,124 BTC (40% of the current supply). Likewise, distribution continues an accelerating trend that can be seen through 2022. The number of wallets with at least one full Bitcoin balance is currently above the all-time high of 908,000.

Glassnode shows that the trend is gaining noticeable momentum this year, while increasing overall in the second half of 2021. In the midst of this, Glassnode, while analyzing lost coins as a module of its weekly newsletter “The Week On-Chain,” concluded that the current bear market is no match for others in terms of intensity when it comes to hodlers. However, there seems to be little appetite for capitulation from current price levels when the bear markets falter.

Fear enters its second month in a row

Nothing seems to change the anxiety when it comes to crypto market sentiment. According to the Crypto Anxiety and Greed Index, investors have been feeling “fear” or “extreme fear” for two months straight. As of October 17, the Index is measured at 20/100. It’s about 10 points higher than classic bear market bottoms. It’s also 14 points higher than this year’s low.

Other valuable data for Bitcoin, SHIB and other cryptos

It is also useful to look at the various data that will be announced during this week for BTC, SHIB. On Wednesday, October 19, inflation data for the euro zone will be released at 12 o’clock. The “Economic Conditions Report” of the FED will also be released on October 19 at 21:00. US unemployment benefits data will be released at 3:30 p.m. Thursday. Apart from that, Digital Asset Hill will take place in London on 17-18 October. In addition, the benefit reports of many companies such as Bank of America, Goldman Sachs, Tesla during the week may affect the market.

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