Bitcoin (BTC) hit a new high over the weekend in the latest episode of its spectacular 2021 bull run — what's next for hodlers?

As the largest cryptocurrency approaches $60,000, Cointelegraph takes a look at the factors to consider when forecasting this calendar week'due south price action.

BTC cost vs. DXY (orange). Source: Tradingview

Investor eyes stock market "reset"

Equities showed no signs of flipping their endless upside on Mon, as buyers continued to cascade in to the market.

Despite warnings that a bubble may already exist almost to burst, markets built on all-time highs as apprehension of an economic recovery worldwide stoked enthusiasm.

In the U.s., information technology was hope surrounding President Joe Biden'southward $1.nine trillion coronavirus stimulus package that was still providing the basis for growth. Last week, Treasury Secretarial assistant Janet Yellen suggested that the mechanism for the money, which would include a third round of stimulus checks worth $1,400, would be finalized by Congress within the next few weeks.

"Everybody is playing out the outlook for better economical growth, the outlook for more financial stimulus," Adrian Zuercher, head of global nugget allocation at UBS Wealth Management, told Bloomberg.

"It'due south normal that nominal yields are trending higher, equities are also trading loftier, and besides bolt based on a better economic outlook."

While Bitcoin has exploded in line with stocks since the crash of March 2020, not everyone was so optimistic.

In fresh comments on Mon, investor and hedge fund manager Michael J. Burry delivered an onerous forecast for the global economy, challenge that a major correction in equity markets was due.

"People say I didn't warn last time. I did, but no ane listened. And then I warn this fourth dimension. And still, no one listens. But I will accept proof I warned," he tweeted.

Speaking to CNBC, Ark Invest founder, CIO and CEO Cathie Wood added that a "valuation reset" would likely be the result of a continued abrupt increment in rates.

With no specific timeframe in heed, the gamble was clearly being felt for this March to repeat terminal March, something which ultimately allowed both Bitcoin and Ether (ETH) to outperform.

Bitcoin macro correlations chart. Source: Digital Assets Data

Dollar strength doom

Any short-term continuation for Bitcoin, meanwhile, could be tempered by middling behavior of the U.S. dollar currency index (DXY), which bounced off lows in recent days.

Traditionally, a recovery in DXY spells downward pressure for BTC/USD, and the alphabetize spent virtually of February falling.

As Cointelegraph reported, long-term forecasts still encounter the dollar weakening overall in time, thanks in no minor part to the huge expansion of the money supply by the Federal Reserve.

"There's a lot more downside for the dollar, and our longer-term perspective is for dollar weakness, non for dollar strength," Standard Chartered research lead Steve Englander told Reuters at the start of February.

An accompanying poll revealed that only xiii% of participants panned for a USD increase in three months' fourth dimension, with the vast majority expecting a loss or stagnation in value.

"A lot of the exceptionalism of the dollar has to do with its scarcity," Englander added.

"The prospect now is that there will be no scarcity of dollars and in fact there will be an abundance every bit far every bit the eye tin can see."
U.Southward. dollar currency index (DXY) i-twenty-four hours candle chart. Source: TradingView

Inflows carry whale sell-off warning

For Bitcoin, signs of a possible pullback came in the form of a spike in exchange inflows on Monday.

Every bit noted past on-chain monitoring resources CryptoQuant, institutional-focused Gemini saw giant aggregated inflows of 28,004 BTC ($1.63 billion), suggesting that a major investor plans to either sell or have funds prepare for sale should prices drop.

"Exist careful downside hazard from whale dumping," CryptoQuant added in comments to Telegram subscribers.

BTC substitution inflows vs. BTC/USD. Source: CryptoQuant

Final calendar week, Cointelegraph reported that stablecoin balances on exchanges had striking best highs, something which accompanied BTC/USD reaching a new tape of its ain — $58,312 on Bitstamp. This was while the so-called Coinbase premium — the deviation in price between Coinbase and Binance — was negative.

For CryptoQuant CEO Ki Young Ju, the nature of the gains was crusade for concern despite the resulting euphoria.

"One thing that makes me uncomfortable nearly this $BTC surge is a negative Coinbase premium," he tweeted.

"Buying ability seems not to come from United states of america institutional investors, but stablecoin whales and retail investors. Not a salubrious bull without USD spot inflows."

Altcoins could soon step up

Should Bitcoin retrace, expectations are that altcoins could once over again move into the spotlight this week.

The weekend produced mixed results for major cap tokens, with some gains while others stagnated. On Monday, Bitcoin's uncertain behavior came as the largest altcoin Ether had already lost two% in 24 hours later on hitting $2,000 for the first time.

Polkadot (DOT), Cardano (ADA) and Chainlink (LINK) were also negative on the 24-hour interval, while XRP put in a surprise move to climb 14% to near $0.60.

"Coin is flowing into #Bitcoin right now," popular trader Rekt Capital letter told Twitter followers last week.

"But given how Altcoins are in the very early stages of their macro Bull Market place - rest bodacious... Altcoins will exist dorsum."

Bitcoin's market cap increased slightly on Monday to 61.4%.

Bitcoin market cap dominance 3-calendar month chart. Source: CoinMarketCap

Peter Schiff and Bitcoin: "If he buys, I'm out"

It may exist time for Bitcoin bulls to get out while they tin — because one of the cryptocurrency's biggest critics might buy a big amount.

In a decidedly cryptic tweet over the weekend, aureate bug Peter Schiff queried at what point he should expect to sell any BTC he might purchase.

"If I were to really buy some #Bitcoin, how would I know when to sell? If your respond is to never sell, then what is the indicate of buying in the first place?" he asked.

"I can't exchange information technology, every bit merchants don't take it. I need to sell information technology get-go, either myself or using an intermediary similar Bitpay. But I'm not talking most small amounts. When do I sell to accept profits or cutting my losses?"

Schiff has dabbled in Bitcoin earlier, lament nigh losing his wallet countersign, but has made a name for himself by shaming its economical footing and promoting gilt as the but option to avoid fiat money aggrandizement.

Involvement in hodling therefore, real or non, put the wind upwards the trading community, who viewed it equally a classic sign of a bull marketplace getting out of control.

"Slowly then all at in one case. If he buys, I'm out," cryptocurrency trader Scott Melker responded.

As Cointelegraph reported last year, Bitcoin hitting $50,000 might indeed be the event that "triggers" Schiff to invest.