Bitcoin sees a cautious start to the week as macro markets dither and Turkey’s currency loses 15% of its value overnight. After a disappointing weekend that featured a rejection at $60,000, Bitcoin has yet to impress traders, who are expecting sideways action in the coming days.
All quiet among stocks
The picture across equities is one of hesitancy on Monday as concerns over bond yields remain and coronavirus bites. It has become a familiar picture for many, Asian markets opened with modest movement. A rise in economic activity will likely fuel bond worries with 10-year Treasury yields already at 1.7% in the United States after gaining rapidly in recent weeks.
Taking a different tone, China revealed that it had more money to spend in financial easing, something which officials claim will reduce risk, rather than add to it.
At the same time, multiple jurisdictions are seeing a return to or continuation of coronavirus lockdown, amid anger at the lack of progress in lifting restrictions on individual freedoms despite vaccine rollouts and the onset of spring.
BTC price fails to wow
Two days of disappointment has greeted Bitcoin traders as last weekend’s rally failed to see a repeat performance.
While analysts tipped BTC/USD for a breakout at some point over Saturday and Sunday, no such luck was had, as the pair saw a firm rejection close to $60,000.
The result, which took some by surprise, was a dip below $56,000 before a modest recovery to $57,700 on Bitstamp at the time of writing.
In his latest market comments, Cointelegraph contributor Michaël van de Poppe was unperturbed by the events, as Bitcoin merely continued moving within a familiar corridor.
Difficulty continues into great unknown
Investors may be thirsty for fresh Bitcoin all-time highs, but two network fundamentals are already at or almost hitting new territory of their own. At the time of writing, both hash rate and difficulty were firmly bullish — the former within 4% of all-time highs and the latter riding higher than ever.
A classic precursor to price upside, hash rate and mining difficulty underscore the strength and longevity of the current bull run. Hash rate provides an estimate of the computing power dedicated to processing transactions, while difficulty is an expression of the competition among miners for block subsidies.
"Young" coins suggest bull run is far from done
Other on-chain indicators nonetheless paint a mixed picture of where exactly Bitcoin is in its bull cycle and how much price upside remains. In terms of investor sentiment, however, there remains plenty of leeway, as longtime hodlers have still not been moved to sell en masse even at $60,000.
As analytics service Glassnode noted over the weekend, the proportion of coins belonging to older investors has not yet decreased in line with previous bull cycle tops, implying that there is longer to go before 2021 tops out.
Exchange reserves back near record lows
It’s not just well-known names favoring continuation. According to data from exchanges, the average hodler is bracing for the long haul and not planning to sell.
Compiled by on-chain resource CryptoQuant, inflows and outflows to major trading platforms are heavily skewed in favor of withdrawals, implying a lack of desire to sell or trade at short notice. In fact, the weekend saw the largest outflows from exchanges since early March, just before Bitcoin hit current all-time highs of $61,700.