Blockchain

Is the time right for $50K BTC? 5 things to watch in Bitcoin this week

It’s been a long time coming, but as yet, nothing has been able to propel BTC/USD over $50,000 for long. Is this week different?

Bitcoin (BTC) is keeping everyone guessing this week as another Monday starts below $50,000.

After rangebound movements over the weekend, bulls are still waiting for a decisive attack on the $50,000 mark — could it happen now?

Despite optimism from analysts, it seems that not even an “uber dovish” Federal Reserve has the fuel to push BTC/USD above crucial resistance.

Cointelegraph takes a look at five things which could still provide Bitcoin with new momentum.

Dollar comedown as stocks set for even higher highs

Stocks hit fresh all-time highs last week on the back of comments from Fed Chair Jerome Powell.

Correspondingly, the strength of the U.S. dollar took a hit, and the U.S. dollar currency index (DXY) began a multi-day downtrend.

Such conditions tend to be favorable for Bitcoin, and a lack of headwinds coming from the macro-environment could yet give bulls a helping hand.

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“There is little doubt Powell was dovish, relative to market pricing and positioning,” one analyst told Bloomberg, echoing the general feeling from Friday’s speech.

Is the time right for $50K BTC? 5 things to watch in Bitcoin this week

DXY 1-day candle chart. Source: TradingView

Resistance keeps Bitcoin bulls in check

Saturday and Sunday weren’t exactly boring for Bitcoin traders — two run-ups above $49,000 gave them plenty of hope for the “big showdown” against the $50,000 barrier.

In the end, however, both attempts failed below $49,500, and BTC/USD remained in a narrow range in the upper $40,000 zone.

On Monday, the picture remains the same, with $47,000 now back on the table for support.

“Bullish on Bitcoin above $51K, until then just noise,” Cointelegraph Contributor Michaël van de Poppe summarized as the weekend ended.

In an uncertain environment, others are warning that buy-side strength may yet crumble in the short term to produce lower support retests.

“BTC is still trying to hold this red area as support, producing increasingly volatile downside wicks below it,” trader and analyst Rekt Capital commented on an updated daily chart.

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The ideal bull run combines solid price appreciation with steady sentiment increases — as history has shown, hitting the standard top zone of 95/100 on Fear & Greed too quickly coincides with a BTC price sell-off.

Is the time right for $50K BTC? 5 things to watch in Bitcoin this week

Crypto Fear & Greed Index. Source: Alternative.me

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