Bitcoin fluctuated at the start of this week’s trading session, hovering between losses and gains due to its neutral weekly outlook.
The benchmark cryptocurrency traded at $ 19,115.54 as of 10:45 a.m. GMT, down 0.27 percent from the European session. For starters, the intraday losses were part of profit-taking by day traders after Bitcoin’s 7 percent rally over the weekend.
Meanwhile, cryptocurrency also slipped as investors’ focus shifted to Pfizer-BioNTech’s approval of Covid-19 vaccines in the US and UK. A successful cure for the pandemic raised hopes for a faster than expected economic recovery. As a result, both Asian and European stocks opened in positive territory. The US stock futures also reported early gains.
However, Bitcoin’s losses appeared limited due to a weaker US dollar. The greenback was also lower against the basket of foreign currencies, indicating that the vaccine news did not lift cash sentiment.
The coming week is a challenge for the US dollar. The Federal Reserve is expected to close its December meeting on Wednesday, followed by the November US retail sales release and December US market manufacturing PMI flash data.
The US dollar index falls short of technical support. Source: DXY on TradingView.com
US Dollar Index breaks below technical supports. Source: DXY on TradingView.com
Analysts estimate that statistics would point to a slowing economy amid a haunting outlook on the coronavirus in the US. In the meantime, the Fed would most likely keep rates close to zero and keep its bond purchase program intact, complemented by unemployment and inflation forecasts.
The worrying tone would put further pressure on the US dollar.
Bitcoin’s bullish outlook is largely influenced by the prospect of a weaker greenback. As of now, the cryptocurrency appears to be targeting bears based on the vaccine news. As soon as optimism subsides, however, investors will turn back to rising inflation forecasts.
The Fed has pledged to shoot the rate up 2 percent.
$ 20K goal for Bitcoin
More bullish demands on Bitcoin come in hopes of second coronavirus stimulus bill. Reuters reported that the Democrats and Republicans initiated a bipartisan effort to put in place a $ 908 billion relief plan. Should it escalate, the package would increase the bearish bias of the US dollar, which in turn should shift investors to other safe haven alternatives.
Bitcoin expects $ 20,000 by the middle of the week, claims Calm Trader. Source: BTCUSD on TradingView.com
Bitcoin expects to hit $20,000 by mid-week, claims Calm Trader. Source: BTCUSD on TradingView.com
A pseudonymous trader said he expects Bitcoin to hit $ 20,000 in light of macroeconomic conditions. He increased his spot exposure to the cryptocurrency as the price closed above $ 19,100, noting that momentum “looks good” above that level [lower timeframes]. ”
“Expect the third test of 20,000 in today’s US session or tomorrow,” he said, cautioning others not to leverage his bullish call.