Bitcoin (BTC) made its fastest plunge in four months on Thursday night, dropping more than 5% in less than 30 minutes. Since then, the price has hovered around $22,400 and saw remarkably little movement over the weekend. Bitcoin briefly fluctuated between $22,200 and $22,600 on Saturday, but is back at $22,408 on Binance and $21,050 on Bitvavo at the time of writing.
This means that the bitcoin price is up 0.1% today. Trading volume increased by 7% in the last 24 hours. The total market capitalization is $433 billion and the dominance is 42.4%. The Fear & Greed Index comes out at 48 (Neutral).
Bitcoin Fear and Greed Index is 48. Neutral
Current price: $22,437 pic.twitter.com/pc72wp9xAQ— Bitcoin Fear and Greed Index (@BitcoinFear) March 6, 2023
What does this week promise for bitcoin?
The bitcoin price is currently in the “chop zone” according to analyst Skew. As he points out below, the next few days may be decisive for which direction bitcoin takes off. Any weakness could lead to a retest of the $19,000.
$BTC 1D Structure & Trend
Probable that this weekly open price will trade as a pivot for 1D breakdown towards weekly demand ($19K) else HL with confirmation above $23K.We’re in the chop zone right now. (weakness or strength in coming day will be leading of momentum/direction) pic.twitter.com/UEVkbidyHe
— Skew Δ (@52kskew) March 6, 2023
Will Silvergate collapse this week?
Last week’s nosedive was likely caused by the problems at Silvergate. However, we have not yet seen the end of this story and there is speculation that the crypto bank will collapse this week.
Unlike most banks, which are brought down by bad loans, Silvergate’s troubles are caused by unreliable deposits, writes @PaulJDavies https://t.co/6TL72iEqJf
— Bloomberg Crypto (@crypto) March 6, 2023
New macro data this week
It is also another full week in terms of macroeconomic developments. For example, next Tuesday and Wednesday we have new speeches from Federal Reserve Chairman Jerome Powell. US unemployment figures will also follow on Thursday (jobless claims) and Friday (unemployment rate).
Week ahead 🎞️:
▪️ Factory orders Mon
▪️ Consumer credit 💸Tues
▪️ Powell 🗣️ Tues and Wed
▪️ JOLTS jobs Wed
▪️ Jobless Claims Thurs
▪️ Nonfarm Payrolls 💰 Fri
▪️ Earnings: $SE $CRWD $DOCU $ULTA $ORCL $MDB $ASAN▪️ Daily market highlights newsletter 👉🏼https://t.co/V9Pl0LSb5u 👈🏻 pic.twitter.com/uDRz0dJnjd
— Rahul (@rhemrajani9) March 5, 2023
The Chinese consumer price index (CPI) will also follow this week, where the economic situation is currently slightly more hopeful. The volatility in the market, with all these factors combined, could therefore increase rapidly again this week.
Do you expect that we are heading towards a recession?
If yes then risk assets still have lower to go in order to be aligned with historical drawdowns.
Right now your are here 👇 pic.twitter.com/xeUuWkvhnC
— ecoinometrics (@ecoinometrics) March 5, 2023
Bitcoin Mining Difficulty
The bitcoin mining difficulty will also be adjusted in about four days. Currently, only an increase of about 1% is expected, but that is still a new record. The competition and therefore the hash rate continue to increase, and with that the pressure on miners is likely to increase slightly.
Ash #Bitcoin hashrate pushes to new ATHs, we can estimate the number of operational ASIC rigs required to generate that hashpower.
Using three latest generation Antminer rigs, we estimate a fleet of
– 🟢5.5M S17s
– 🟡2.8M S19 Pros
– 🔴1.2M S19 XP Hydhttps://t.co/O2EU4gZTCe pic.twitter.com/EQabTeA7mS— glassnode (@glassnode) March 5, 2023
Stablecoin inflow to exchanges
Cryptoquant analyst Jaybot reports seeing a massive influx of stablecoins to exchanges. That may be one bullish signal for the BTC price, as investors normally do this to exchange their stablecoins for speculative crypto again. This means that their purchasing power increases.
Large-scale stablecoin inflow to exchanges
by @cryptojaybot— CryptoQuant.com (@cryptoquant_com) March 6, 2023
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