Bitcoin (BTC) is entering a new week after another weekend of great volatility – but this time the way was down, not up.

As the market loses $ 7,000 – the most since the “vertical” price hikes began – Cointelegraph presents five things that could keep him moving for the next few days.

BTC dip makes Guggenheim want to sell

At the top of the list of topics among Bitcoiners will be the cryptocurrency’s sudden decline on Saturday and Sunday.

Starting at highs of nearly USD 42,000, BTC / USD saw an out-of-hours sell-off, with bears dropping the pair to current local lows of USD 32,300.

The drop has been the biggest this year and since the Coronavirus caused a cross-asset crash in March 2020, but was widely predicted by analysts who claimed Bitcoin had become overloaded.

“#Bitcoin crashes> 10%: The worst Bitcoin dip since March is reminiscent of the last half-cycle in 2016/2017. The rally was followed by a slump of more than 50% in 2017, ”financial commentator Holger Zschaepitz summarized in cautious terms on Twitter.

BTC / USD 1-hour candle chart (Bitstamp). Source: TradingView

In fact, a 23% drop is nothing new to Bitcoin hodlers in the long run, and the lack of larger losses suggests that even above USD 30,000, buyer support remains strong.

“These and upcoming dips are the opportunities you’ve been looking for during the #FOMO feelings you had for $ 40,000. Take advantage of it, ”continues analyst Michaël van de Poppe of CoinTelegraph Markets.

At press time, Bitcoin was already on the mend, with $ 35,000 quickly following the lows. However, this was not enough for institutional Bitcoin buyer Guggenheim, where CIO Scott Minerd suddenly signaled that the fund would sell some of its BTC position.

“Bitcoin’s parabolic rise is unsustainable in the short term. Vulnerable to setbacks, ”he claimed on Monday.

“The target technical benefit of $ 35,000 has been exceeded. Time to get some money off the table. “

Others pointed to the potential bargain for high-volume buyers.

“Institutions are really shaking hands with weaknesses to acquire more #Bitcoin,” David Gokhshtein, founder of Gokhshtein Media, summarized about the current status quo.

Biden talks about printing $ 3 trillion in cash

In the United States, a potential bull sign for Bitcoin in the form of a massive $ 3 trillion stimulus program from the incoming Biden government is masked by a recent rebound in dollar strength.

A classic inverse correlation for Bitcoin, the US dollar currency index (DXY) has continued to rise for the past few days, returning to above 90 after hitting its lowest level since March 2018.

Last year, the weakening of the dollar often boosted Bitcoin, at a time when other price relationships were steadily crumbling.

“The dollar is so extremely oversold, too hated, and too short-cut that at some point it all has to rise for a while,” said Matt Maley, chief market strategist at Miller Tabak + Co. told Bloomberg.

“The dollar is getting very ripe for a tradable bounce – one that will last at least a few weeks and maybe even a few months.”

US dollar currency index 1-day candle chart. Source: TradingView

But looking at the long term, it was clear to many this week that the US was simply pedaling its real economic hardship further down the road. President-elect Joe Biden plans to give Americans checks worth $ 2,000 as part of a massive money-printing exercise that could be worth $ 3 trillion.

Should it pass, in the blink of an eye, central bank liquidity will increase the most since the start of the coronavirus pandemic, and US federal debt will exceed $ 30 trillion for the first time in history.

“Time for Plan B”, Danny Scott, CEO of CoinCorner, the UK, responded to the plans.