All Time High Weekly End – 5 Things To Watch For Bitcoin This Week
Bitcoin (BTC) simply refused to die this week as the dip below $ 60,000 lasted only an hour and the bears burned again.
After a rather quiet weekend, there was a typical decline on Sunday before BTC / USD rallied sharply just an hour later.
As a result, Bitcoin not only maintained its bullish course, but also closed its highest weekly close of all time – around $ 61,500.
As the market prepares for the possible start of trading in the first US Bitcoin Exchange Traded Funds (ETFs), volatility is as good as guaranteed, analysts say. said analysts.
Cointelegraph considers five things to note during the week that BTC / USD hit an all-time high and institutional access made a historic leap.
Bitcoin takes less than an hour to “buy off”
Just when it looked like the run had stalled at an all-time high, Bitcoin surprised everyone again overnight.
After losing $ 60,000 late Sunday, the bulls didn’t have time to weaken the BTC price, and before BTC / USD even hit $ 59,000, they started a strong buy.
Hours later, in addition to over $ 60,000, the pair are back over $ 62,000 – and still there at the time of writing.
The event didn’t even affect Bitcoin’s weekly closing price, although volatility still hit an all-time high – around $ 61,500.
“Historic weekly closing prices mean that BTC is in a good position for further upward movement”, trader and analyst Rekt Capital summary on Monday.
He added that the next phase of BTC price action will be “more volatile” than before, in line with previous bull market years of 2013 and 2017.
While many analysts celebrate the weekly closing milestone, the imminent US market opening could also cause a stir.
The first Bitcoin ETF products could hit the market on Monday with the blessing of US regulators, this comes as BTC / USD is $ 3,000 lower than its all-time high. All in a new era.
Refinancing rates for derivatives have also cooled on the stock exchanges since last week, which allay concerns about unsustainable price increases and the associated price falls.
ETFs are the go, but not for everyone
Well, love it or hate it, this week is all about the Bitcoin ETF.
When rumors began to circulate late last week that the US gave the green light, Bitcoin price action heated up – and the trend is likely to resume this week.
After years of rejection, the Securities and Exchange Commission (SEC) is preparing to launch two ETF products, both based on CME Group’s Bitcoin futures.
These precede a lengthy decision-making process that begins next month regarding physical Bitcoin ETFs – the ones that have BTC as an underlying asset and are a topic of real interest to the public.
There is no guarantee that these traditional ETFs will be approved and there have been many concerns that the market could disappoint again.
Since many applications have been decided, however, there are still six months until the SEC breaks through.
Optimism that the trend is benefiting the crypto industry continues this week as Grayscale confirms it will request the conversion of its flagship fund product, Bitcoin, into an ETF.
– Barry Silbert (@BarrySilbert) October 17, 2021
Grayscale’s fund, Grayscale Bitcoin Trust (GBTC), has been in the limelight for the past few weeks, trading at an increasing discount on spot BTC amid concerns that institutional clients may trample ahead of the ETF’s launch.
The higher fees so far are an example of a competitive advantage debate, while some have suggested that futures-based ETFs are, by definition, not a viable alternative.
This graphic shows why you should buy #Bitcoin against Bitcoin Futures ETF. For investors, new Bitcoin ETFs can be more expensive than buying the cryptocurrency directly. Bitcoin Future has underperformed by 30 percentage points since Bitcoin Future was launched in 2017. https://t.co/1ZnVBJQlGa pic.twitter.com/oXrZ95Wsmg
– Holger Zschaepitz (@Schuldensuehner) October 17, 2021
“First of all, most institutional players have direct access to CME futures. The main reason they choose to trade ETFs over futures is often to avoid tracking errors (compared to spot prices) from the cost of transferring futures or price variances from going forward or backward. “Added crypto trading company QCP Capital in a circular to Telegram channel subscribers Friday.
“As such, an ETF based on CME futures takes away the fundamental advantage of an ETF; Track spot prices as closely as possible. “
Difficulty increased for the 7th time in a row
Bitcoin network fundamentals continue to impress this week and troubles are leading.
Arguably the most important characteristic of Bitcoin is getting stronger and stronger and will record its seventh consecutive profit on Tuesday. That was the last time in 2019.
It’s going to be hard to bring that profit back over $ 20 trillion for the first time since June.
It does this despite some fluctuations in the hash rate, with estimates now dropping to 123 exahashes per second (EH / s) and exceeding 140 EH / s this month.
However, with the general uptrend still intact, there is little concern that the US is now home to a large market share of the bitcoin mining power.
Supply shock predicts a “good year” in 2022
While Bitcoin price predictions focus on what could happen in the fourth quarter of this year, some have looked further – and used the data to draw even more optimistic conclusions.
One analyst who paints a rosy picture for 2022 is Willy Woo, creator of the Woobull data resource and known for his Bitcoin market cycle research.
Last weekend, woo emphasize The increasing scarcity of Bitcoin is likely to be the impetus for ongoing price pressure.
Historically, he found that the reduced supply combined with more supply in the hands of short sellers and no sales plans create a strong bullish signal.
His index “Long-Term Holder Supply Shock” clearly shows that such a scenario has happened many times in the history of Bitcoin.
“The technical name of this diagram is ‘2022 will be a good year'”, he summarized Twitter followers.
As Cointelegraph reported, long-term owners have controlled a near-record-breaking percentage of BTC supply, leading to the expectation that the battle for the remaining coins will be hotter than ever.
This will be supported if a physical ETF is approved, which will happen as early as November and could last for several months.
In the meantime, the BTC balances on the major exchanges tracked by CryptoQuant have leveled off at just under 2.4 million BTC after a sharp decline in September.
The next bitcoin bear market is coming
With so much excitement about how Bitcoin price could top this year and how high it could go, some analysts have turned their attention to the downside – the bear market.
Related: Top 5 Cryptocurrencies You Should See This Week: BTC, ETH, SOL, MATIC, FTM
Historically, nothing has risen in a straight line and Bitcoin is no exception. In each halving cycle, there was a price high in the year after the block subsidies were halved, followed by a price low in the middle of the cycle.
This cycle, several prominent market participants claim, will make no difference.
Therefore, the price spike will be followed by an extended pullback that is consistent with both 2014 and 2018.
For popular Twitter analyst TechDev, the exchange should be an order of magnitude larger than the last one anyway – up to $ 60,000 – but the process will begin before the end of 2021.
“I want a long cycle. Who would not do that? But nothing I’ve seen about macro PA suggests it will happen, ”he said warning Followers on the weekend.
“Watch your statistics. 2 week RSI channel, RVI 92-93. If they get hit, I’ll be out. Ignore them in the hope of a new paradigm and you will likely be met by those who don’t. “
Among several accompanying charts, one clearly showed how the Bitcoin Relative Strength Index neatly captured every peak over the two-week period.
His Twitter colleague Rekt Capital also took the opportunity to remind followers and subscribers of the need to profit over time.
“People think that BTC will never see a -80% bear market again because it is now mainstream and too mature for an asset class,” he said. To discuss.
“Don’t forget that just a few months ago there was a -53% correction. The average bear market depth is -84.5%. Chances are that something will happen after this bull market. “
However, the weekend offered an upbeat forecast for the bear market, with Dan Morehead, Managing Director of Pantera Capital, saying the bottom will be “shallower” than the others.
As Cointelegraph reported, other measures aim for a good time by 2022, including for Bitcoin …