Key Bitcoin takeaways
- Bitcoin experiences minor selloff as it crosses above $58,000 on Monday.
- The move lower follows a strong weekend, in the wake of rising demand for safe-haven assets against the Omicron FUD variant.
- Key U.S. market data on Tuesday and Friday would shed further light on Bitcoin’s next direction.
NEW DELHI (CoinChapter.com) — Bitcoin (BTC) traders resume selling after witnessing a good weekend. Nonetheless, their efforts to bring the prices down appear weak as market forces watch a new Covid19 variant, dubbed Omicron, boost investors’ safe-haven appetite.
Support confluence in play against Omicron
The Bitcoin price limited its downside sentiments after testing a support confluence near $53,300 over the weekend. On Monday, traders bought the dip and caused the flagship cryptocurrency to rebound to as high as $58,280. While a small correction ensued near the said sessional high, it was not enough to end the overall bullish retracement.
As the new week begins, Bitcoin’s primary challenge will be to retain its safe-haven narrative intact as investors grapple with Omicron, a fast-spreading Covid19 variant responsible for causing selloff across cryptocurrencies, as well as travel, leisure, and tech stocks, last week.
Reports suggest that the current vaccines might not protect people from Omicron, an advanced version of the previous Covid19 variant, Delta. As a result, many countries, including Japan, decided to ban international travel altogether while others leveled up quarantine rules for incoming travelers.
All that happened as Bitcoin rebounded from its support confluence and looked poised to continue its upside momentum towards $60,000 this week. In doing so, the cryptocurrency also leveled its bullish target above $70,000, at least by the end of this year.
Key Bitcoin effecting events this week
Investors will be watching the release of the Conference Board’s Consumer Confidence data on Tuesday to study the impact of persistently higher inflation on consumer sentiment. Another key event in the week will come in the form of Friday’s nonfarm payrolls, which, as markets believe, would produce stronger-than-expected results.
A rise in jobs could strengthen the U.S. dollar, which would mean a lesser appetite for competing safe-havens like Bitcoin and gold. Nonetheless, fears surrounding the Omicron could keep the lids on the greenback’s gains. As a result, that would also mean Bitcoin showing price volatility by the end of this week, with possibilities of hitting $60,000.
