Bitcoin targets $12,000 amid new warnings over dollar weakness

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 targets $12,000 amid new warnings over dollar weakness "The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust."  — Satoshi Nakamoto Welcome to the Cointelegraph Markets weekly newsletter that covers the main factors influencing Bitcoin's price in the week ahead. Fresh from a rebound closer to $12,000, Bitcoin is as unpredictable as ever at the start of a new trading week. Where will the market go next? Cointelegraph serves up five factors to keep an eye on for Bitcoin and cryptocurrency traders. Continue reading to see what may be at stake for the largest cryptocurrency in the coming week. Stocks keep going up... Nothing seems able to stop the global equities rally, and last week's Federal Reserve speech on inflation only helped matters. This week, analysts are eyeing continued upside for large-cap stocks despite small-cap stocks and consumers themselves feeling the pressure of coronavirus policies. The curious paradox has long irked Bitcoin proponents who argue that the economic playing field unfairly privileges those already closer to the source of the money supply — particularly in the United States. In addition, huge interventions in stock markets since March have undermined faith in the idea that "value" is even a concern for participants. ...While the dollar jitters Where stocks are controversially gaining, the U.S. dollar is more conspicuously losing. On the back of the Fed, the U.S. dollar currency index continued to fall. After a modest uptick over the weekend, the index forms a topic of interest for Bitcoin traders, who have seen an inverse correlation emerge between the two assets. The Index measures USD strength against the currencies of a basket of U.S. trading partners. At the end of July, as Cointelegraph reported, it fell to two-year lows. Traders eye futures gaps A modest gap opening in the Bitcoin futures chart this weekend keeps the debate open about a possible move lower. With Bitcoin keen on rising or falling to "fill" gaps in futures markets, one empty spot at $9,700 remains on traders' radar as a short-term price target. Assuming this weekend's gap, which is around $11,650, gets filled quickly, only two others are left. In addition to $9,700, a $16,000 gap provides another if unlikely target for bulls. Hash rate underscores miner sentiment The health of the Bitcoin network is plain to see this week, as the hash rate returns to its upward trajectory. At 125 exahashes per second, the hash rate is recovering from a previous slump and is just 5 EH/s off its all-time highs from earlier this month. Miners are clearly bullish on profitability, as more and more computing power is dedicated to the network. Bitcoin difficulty also remains at a record, reflecting competition among miners. Consumer sentiment still too "greedy" Also plain to see is Bitcoin investor "greed" as price action continues to favor the bulls. According to the Crypto Fear & Greed Index, the danger of a sell-off remains. The Index uses a basket of factors to gauge sentiment among hodlers and traders, with a high reading warning that a correction in price should ensue. On Monday, the Index was at 75/100, firmly in the "greed" zone, and it hasn't left since the end of last month. 1.5 million people follow us on social media Download our official app:

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