{"id":235570,"date":"2021-04-26T12:04:23","date_gmt":"2021-04-26T09:04:23","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/5-things-to-watch-in-bitcoin-this-week-as-greed-and-leverage-get-flushed-out\/"},"modified":"2021-04-26T12:04:23","modified_gmt":"2021-04-26T09:04:23","slug":"5-things-to-watch-in-bitcoin-this-week-as-greed-and-leverage-get-flushed-out","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/5-things-to-watch-in-bitcoin-this-week-as-greed-and-leverage-get-flushed-out\/","title":{"rendered":"# 5 things to watch in Bitcoin this week as greed and leverage get \u2018flushed out\u2019"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3667da88e42\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3667da88e42\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/5-things-to-watch-in-bitcoin-this-week-as-greed-and-leverage-get-flushed-out\/#Stocks_steady_but_dollar_dives\" >Stocks steady but dollar dives<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/5-things-to-watch-in-bitcoin-this-week-as-greed-and-leverage-get-flushed-out\/#BTC_regains_53000_mark\" >BTC regains $53,000 mark<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/5-things-to-watch-in-bitcoin-this-week-as-greed-and-leverage-get-flushed-out\/#Difficulty_set_for_biggest_retrace_since_November\" >Difficulty set for biggest retrace since November<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/5-things-to-watch-in-bitcoin-this-week-as-greed-and-leverage-get-flushed-out\/#Sentiment_tends_towards_%E2%80%9Cextreme_fear%E2%80%9D\" >Sentiment tends towards \u201cextreme fear\u201d<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/5-things-to-watch-in-bitcoin-this-week-as-greed-and-leverage-get-flushed-out\/#Analyst_highlights_price_dip_%E2%80%9Csilver_lining%E2%80%9D\" >Analyst highlights price dip \u201csilver lining\u201d<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># 5 things to watch in Bitcoin this week as greed and leverage get \u2018flushed out\u2019  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Bitcoin (BTC) is keeping bulls and bears guessing as it opens a new weekly candle in the green, heading away from $50,000.<\/p>\n<p>After an uneventful but uninspiring weekend, BTC\/USD has begun Monday by reclaiming $53,000 for the first time since April 22. What could lie in store?<\/p>\n<p>Cointelegraph takes a look at five factors that could shape BTC price action in the coming days. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-04\/df7983e9-0e90-473b-b025-6cb26beaa3be.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 1-week candle chart (Bitstamp). Source: Tradingview<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Stocks_steady_but_dollar_dives\"><\/span>Stocks steady but dollar dives<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Stocks are once again cool this week as the macro picture presents a familiar mixture of hope and misery driven by the coronavirus.<\/p>\n<p>While Asian markets had an uneventful day on the whole, India\u2019s virus problems and Turkey\u2019s financial woes were cause for concern.<\/p>\n<p>Separately, with the United States set to send tourists to the European Union this summer, fresh economic incentives for traders are beginning to take shape.<\/p>\n<p>With no overall direction, however, the impetus for Bitcoin to track a macro narrative is barely existent \u2014 and the day\u2019s price movements are already proving it. <\/p>\n<p>\u201cWhat does the future hodl?\u201d Tesla and SpaceX \u201cTechnoking\u201d Elon Musk <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/elonmusk\/status\/1385879790381641728\">summarized<\/a> on Saturday in a tweet that will be poignant for many a market participant. Tesla, one of the big-name BTC investors, is due to report on earnings after the Wall Street close.<\/p>\n<p>When it comes to the dollar, the opportunity for Bitcoin is more skewed to the upside \u2014 the U.S. dollar currency index (DXY) is continuing its decline after closing below 91 on Friday. As Cointelegraph often reports, the index, particularly over the past year, tends to be negatively correlated with BTC\/USD.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"BTC_regains_53000_mark\"><\/span>BTC regains $53,000 mark<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin spot price action is already offering surprises, and unlike last week, it\u2019s the bears who are being caught unawares.<\/p>\n<p>Data from Cointelegraph Markets Pro and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/BTCUSD\/\">Tradingview<\/a> reveals BTC\/USD rising to hit $53,000 for the first time since losing the same level on its way down last week. <\/p>\n<p>The level itself is significant, equalling a Bitcoin market cap of $1 trillion and thus previously forming a line in the sand that analysts thought would hold. <\/p>\n<p>In the event, it was $46,000 which provided the floor, but as yet, there is no firm belief that the latest price dip is over. This is evidenced in trading positions, as the move up to $53,000 liquidated shorts to the tune of $150 million in an hour.<\/p>\n<p>\u201cLooks like this interim sell-off might be reaching its conclusion,\u201d podcast host Preston Pysh <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/PrestonPysh\/status\/1386368991283892225\">suspected<\/a> late on Sunday.<\/p>\n<p>The scope of the dip was a shock to some investors, coming despite hordes of new buyers entering the network. On-chain metrics as a whole have remained in the green, lending further weight to the theory that current circumstances are a temporary blip in an otherwise enduring bull market. <\/p>\n<p>\u201cMarket is very emotional over 2%+\/- Swings on closes,\u201d Filbfilb, co-founder of trading suite Decentrader, told Telegram subscribers last week. <\/p>\n<blockquote><p>\u201cTake note, volatility will be inbound soon. I&#8217;m quite bullish but think we need a bit more of a shake before up. Could be wrong&#8230; about the direction, but not so much about the volatility so buckle up.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Difficulty_set_for_biggest_retrace_since_November\"><\/span>Difficulty set for biggest retrace since November<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In fundamentals, miners continue to recover from a Chinese power outage that truncated the network\u2019s hash rate overnight earlier in April. <\/p>\n<p>As a result of flooding, as before in Bitcoin\u2019s life, large segments of China\u2019s mining power dis<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eared from the network, leading to a drop in hash rate which at one point neared 25% of all-time highs.<\/p>\n<p>Since then, miners have begun adapting, while a drop in mining difficulty will allow smaller operators to mine more profitably and provide an incentive for maintaining network security.<\/p>\n<p>This drop, set to occur in around five days\u2019 time, will be the largest negative move since November 3, when BTC\/USD was still at $13,000. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-04\/dc58aa49-41bf-4aed-93b1-76bf5d54d647.png\"><figcaption style=\"text-align: center;\"><em>7-day average Bitcoin hash rate. Source: Blockchain.com<\/em><\/figcaption><\/figure>\n<p>Difficulty adjustments form an essential, if not the most essential, part of Bitcoin\u2019s ability to maintain itself regardless of external factors influencing its modus operandi.<\/p>\n<p>Recent months have been characterized by upticks in difficulty, which together with hash rate has seen consistent new all-time highs. Should history continue to repeat itself, price action should also revert to gains in line with their recovery.<\/p>\n<p>Commenting on recent events, Adam Back, CEO of Blockstream, cautioned observers on their choice of statistics resource and argued that the drop had not in fact been as large as some suggested. <\/p>\n<p>\u201cBitcoin hashrate back at 157 EH about 5% below 168EH peak. Mostly recovered from 25% down at 125 EH,\u201d he <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/adam3us\/status\/1386272307451158529\">tweeted<\/a> on Sunday.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Sentiment_tends_towards_%E2%80%9Cextreme_fear%E2%80%9D\"><\/span>Sentiment tends towards \u201cextreme fear\u201d<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Along with shorts and overleveraged longs alike, it seems that irrational sentiment in crypto has finally been shaken out.<\/p>\n<p>That\u2019s the conclusion of the popular <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/alternative.me\/crypto\/fear-and-greed-index\/\">Crypto Fear &amp; Greed Index<\/a>, which uses a basket of factors to determine trader sentiment and therefore what\u2019s likely to occur on BTC\/USD as a result of their actions.<\/p>\n<p>Previously, as new all-time highs of $65,000 appeared, Fear &amp; Greed was nearing historic record highs in line with the tops of bull markets past.<\/p>\n<p>At nearly 80\/100, a sell-off was clearly on the cards as per the metric, which took around a week to react to the $46,000 price dip.<\/p>\n<p>Now, however, the pressure is off, and the index has gone from \u201cextreme greed\u201d to \u201cfear\u201d \u2014 effectively a \u201creset\u201d of sentiment which provides scope for further price gains.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Analyst_highlights_price_dip_%E2%80%9Csilver_lining%E2%80%9D\"><\/span>Analyst highlights price dip \u201csilver lining\u201d<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It\u2019s not just private individuals who have undergone a serious mood change. According to other metrics, erratic behavior from professional traders has also been effectively cleansed from the market.<\/p>\n<p>In his <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/pomp.substack.com\/p\/on-chain-metrics-explain-the-bitcoin\">latest update<\/a> for Morgan Creek Digital co-founder Anthony Pompliano\u2019s market <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>letter on Friday, analyst William Clemente noted that longs had once again become an attractive bet.<\/p>\n<p>\u201cThere was some silver lining to this event, greed and leverage was flushed out,\u201d he wrote. <\/p>\n<blockquote><p>\u201cIn addition to the liquidations, this can be illustrated by funding rates. To peg the perpetual swap contract to Bitcoin spot price, funding rates are used. When the majority of traders go long, it becomes profitable to go short, and vice versa. During the event, funding rates flipped negative, meaning it became profitable for traders to take the long side of the trade. This has shown to be a buy signal in the previous two times this happened during this bull market.\u201d<\/p><\/blockquote>\n<p>Also approaching a \u201cfull reset\u201d is the spent output profit ratio (SOPR), a metric which Cointelegraph previously noted tends to dictate local market bottoms.<\/p>\n<p>\u201cCurrently, SOPR is approaching the full reset mark, meaning price has either reached, or is very closing to reaching, the bottom of the current correction,\u201d Clemente added.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/5-things-to-watch-in-bitcoin-this-week-as-greed-and-leverage-get-flushed-out\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 5 things to watch in Bitcoin this week as greed and leverage get \u2018flushed out\u2019 &#8221; Bitcoin (BTC) is keeping bulls and bears guessing as it opens a new weekly candle in the green, heading away from $50,000. After an uneventful but uninspiring weekend, BTC\/USD has begun Monday by reclaiming $53,000 for the first&#8230;<\/p>\n","protected":false},"author":1,"featured_media":235571,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDQvYTc3ZTdlNTMtOWM3OC00NDcyLWI3ZGYtYzRlOThhNjYyNjkyLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74939,73785,70359],"class_list":["post-235570","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-market-analysis","tag-markets","tag-stocks"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/235570","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=235570"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/235570\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/235571"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=235570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=235570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=235570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}