Bitcoin Prepares for a Breakout as a New Week Starts With Eerie Calm

Welcome to the Cointelegraph Markets weekly newsletter that covers the main factors influencing Bitcoin's price in the week ahead...

View this email in your browser Markets Outlook Bitcoin Prepares for a Breakout as a New Week Starts With Eerie Calm "If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes."  — Warren Buffett Welcome to the Cointelegraph Markets weekly newsletter that covers the main factors influencing Bitcoin's price in the week ahead. Bitcoin can start a new week in almost any style — and this one is a firm contrast to the last. Calm conditions prevail, but opinion is increasingly favoring major disruption hitting markets this week. The past seven days produced little signs of a Bitcoin breakout. Macro factors dictated the mood, with a weeks-old price compression wedge remaining intact. Continue reading to find out what might come next — will Bitcoin exit the pattern, or keep clinging to its $9,000 corridor? Stocks provide the background to an uneasy calm The week began with equities futures slightly down, with the opening bell yet to ring on Wall Street. As ever, sentiment around the coronavirus was high on the list of priorities for investors, with the slight downward pressure likewise reflecting in uninspiring action on BTC/USD. In Bitcoin, however, everything can change. If analysts' predictions come true, a breakout is due within days. Multiple weeks of lower highs and higher lows — so-called "compression" — is now overdue for disintegration. Whether that will be to the upside or downside is a mystery, but Cointelegraph Markets' Keith Wareing is weighing a potential 11% correction. CZ chimes in on Bitcoin's safe haven outlook Whether or not Bitcoin is dependent on stocks, its relationship to macro since the March coronavirus crash isn't everything, says Changpeng Zhao. Speaking to Bloomberg, the Binance CEO said that only longer-term changes in investor faith in fiat will improve Bitcoin's prospects as a safe haven. "I think people should not take that meaning of 'safe-haven assets' too literally… there are always multiple factors affecting the price of an asset," he said. Altcoin futures contrast BTC On the topic of Binance, its altcoin futures have seen exponential volume growth in recent weeks, even as Bitcoin futures volumes across the market stagnate. Lack of volume has been a chief concern among Bitcoin analysts in recent weeks, and investor attention appears increasingly focused on short-term gains in altcoins. The Defi phenomenon, which has seen certain assets seal huge advances this month and last, may be fuelling speculative activity. Gold may shoot beyond $1,800 More excitement is centering around gold this week, with forecasts suggesting that even at nine-year highs, XAU/USD may have more room for growth. The reason, they suggest, is likewise the coronavirus — central bank money printing and lower interest rates demand that money is parked elsewhere. Bitcoin, as Cointelegraph reported, has yet to capitalize on current sentiment to the extent that gold has — despite its year-to-date performance beating the precious metal. Fundamentals stay stronger than ever Bitcoin's network difficulty and hash rate — two essential measures of miner sentiment and network health — remain at or near all-time highs. According to current estimates, the upward trajectory will continue for difficulty at least, propelling the metric to its highest levels in history in seven days' time. 1.5 million people follow us on social media Download our official app:

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