This week has started with Bitcoin pulling back from a dip again to retest the $20,000 mark. Everyone is watching closely to see if it can get there before Christmas, or before New Year. What might influence its rise or fall? Here are a five things that Cointelegraph advises us to watch out for.
In the USA, talks are focusing on a coronavirus stimulus package. At around $900 billion This will test the strength of the USD. It will help various sectors, but not the average citizen. Cointelegraph says, “Prospects of both a stimulus package and vaccine rollout have helped buoy a flagging dollar, but for the meantime, risk assets are recovering.”
The Japanese stock market has had a boost and the price of oil is on the rise, as there is hope that the vaccine will improve demand for the product, as people travel more again.
A boost to the strength of the dollar is a concern for Bitcoin, as always, and the thing to watch out for is” “fresh guidance from the U.S. Federal Reserve about its virus-related economic response, with the dollar potentially moving in step with any major updates.”
There was plenty of activity around Bitcoin over this weekend when BTC/USD rallied after Friday, rising from near $18,000 to highs of $19,400. What we will likely see are fresh gains leading to another round of confidence votes from several familiar investors.
Last week’s attempt to take $20,000 quickly failed, leading to a low of $17,750. Cointelegraph says, “Should $20,000 finally break, little resistance remains until $22,000 — currently Bitcoin’s final price hurdle.” Cointelegraph’s Michael van de Poppe added, “We do see that we’ve made another higher low, which makes it very likely that we’re going to achieve a new all-time high in the coming weeks if $19,400-$19,500 breaks.”
Furthermore, “Institutional uptake meanwhile continues to buoy sentiment and give Bitcoin positive publicity in the mainstream.”