Bitcoin grapples with politics and $10,000 as sentiment turns fearful

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 grapples with politics and $10,000 as sentiment turns fearful "Remember when a Bitcoin dip was well below 10K? Now Bitcoin dips are comfortably above 10K."  — Tyler Winklevoss Welcome to the Cointelegraph Markets weekly newsletter that covers the main factors influencing Bitcoin's price in the week ahead. After a turbulent end to the previous week, Bitcoin is contending with crucial $10,000 support as well as external forces. The picture is markedly different to even the start of last week, underscoring the changeability of Bitcoin — no two weeks are ever the same for hodlers. What issues could move the market up or down this week? Continue reading to discover five of them and their potential impact on Bitcoin's price. U.S. dollar flashpoint The inverse correlation between Bitcoin and the U.S. dollar currency index continues to be a major focus for analysts. On Friday, Bitcoin hitting lows of $9,900 followed days of gains for DXY, leading to warnings that unless it falls again, safe havens and Bitcoin will continue to experience pressure. Among them is Max Keiser, eagerly hoping for a significant DXY crash far below the levels it hit in August, which themselves constituted two-year lows. BTC/USD shed 15% before the weekend, with $10,000 providing only shaky support since. Europe to shape the economic mood In the eurozone, tensions are running high as the European Central Bank meets to discuss economic policy on the back of a return to deflation. At the same time, Brexit talks are once again on the verge of collapse due to a lack of consensus, with U.K. prime minister Boris Johnson set to give an absolute deadline of Oct. 15 to agree on a deal. Meanwhile, coronavirus woes continue, with commentators warning that the rebound from March's crash is now running out of steam. Familiar futures gaps Bitcoin now has a second nearby futures gap to fill — and this one is higher, not lower.  Thanks to recent volatility, there is now a roughly $200 corridor in CME Group's Bitcoin futures market focused on $10,500 — BTC/USD can rise to fill the void. A remaining gap at $9,700 is still unvisited after Bitcoin bounced at $9,900 several times over the past few days. Hash rate and difficulty weather the storm Miners appear broadly unfazed by the price losses, with Bitcoin's network fundamentals losing only marginal ground. The difficulty is set for a small drop on Monday at the next readjustment, while the hash rate is still within sight of all-time highs from last month. As Bitcoin fell from $12,000, outflows from major mining pools accelerated, indicating preemptive measures from network participants. Investors are feeling the fear Measures of consumer sentiment on cryptocurrency have underscored the dramatic shift in sentiment over the past week. The Crypto Fear & Greed Index has completely changed its tone in recent days, going from "greed" to "fear" in a sudden drop, which places it back in its position from early July. Any trace of irrational exuberance is now firmly absent from the Index's constituent parts. 1.5 million people follow us on social media Download our official app:

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