“Resistance is futile” – 5 things to watch out for in Bitcoin this week

Bitcoin (BTC) started a new weekly high in a number of ways as BTC / USD closed its highest weekly weekly close ever.

After days of surprisingly slow progress, Bitcoin finally made an upward breakout to break key levels.

Ready to go “parabolaSome argue that after a week dominated by altcoins record highs, the largest cryptocurrency is now firmly in the sights of traders again.

Will “Moonvember” live up to its name? Cointelegraph is exploring what could change the market in the coming days.

Huge futures gap opens as BTC tops $ 65,000

It took a week of patience, but the bulls were finally rewarded overnight on Sunday when Bitcoin took off and recaptured its all-time high of $ 64,900 from April.

As is often the case with bull runs, the rate of increase is rapid, with just one candle per hour adding $ 2,000 to the spot price.

The timing was perfect, coming just before the week’s close, allowing the weekly chart to hit a new record high of $ 63,270.

https://twitter.com/BarrySilbert/status/1457494228301488133?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener

As predictable, when the higher short-term predictions return, the positive responses become overwhelming.

Podcast host Scott Melker is useless summary along with a chart showing a bitcoin trend breakout.

Along with the weekly all-time high comes another major milestone for the broader crypto market – the combined market cap of all tokens exceeds $ 3 trillion for the first time.

As Cointelegraph reported, optimism remains about Bitcoin’s long-term potential, with opinions gathering around the idea that the lion figure’s return opportunities will still materialize this cycle.

“Those who think it’s too late to buy BTC don’t know how much higher it can go this cycle,” noted analyst Rekt Capital Add.

Filbfilb, analyst and co-founder of the trading platform Decentrader, has pointed out one of the few possible causes for the correction in the form of CME futures spreads.

Since the market will open significantly higher on Monday than it closed on Friday, there is a likelihood that the spot will turn down for a short time in order to “fill” the gap that has arisen – according to the patterns.

He told Telegram channel subscribers: “Looks pretty optimistic, maybe back to the CME distance, but looks like fire imo in general.

Capital increases when “extreme greed” is expected

In addition to the CME gap, another derived signal can put the cat among the pigeons in a short time frame.

The data at the time of writing suggests that funding rates on the exchanges are returning to unsustainable territory.

Though not as high as it was during the run to $ 67,000 or more in October, high active funding often results in a price correction as traders become complacent when hungry for the market.

However, for analyst Dylan LeClair, this is nothing to worry about as there are no clear signs of an increase in financial leverage.

grandfather told Twitter followers.

“The current price action is the result of exhausted spot sales, not a sudden increase in leverage. No seller liquidity = spread or more. “

Meanwhile, general market sentiment is leaning towards “extreme greed,” as measured by the Crypto Fear & Greed Index.

However, the index at 75/100 shows that there are still at least 20 points to run before the classic top conditions occur.

Miners still don’t sell – here’s why

With new all-time highs seemingly around the corner, Bitcoin miners continue to show firm determination and “hodl” not to sell their BTC.

Data from the chain analysis service CryptoQuant shows that the flow of money from miners’ wallets has stagnated in the past few weeks and months, with a few exceptions.

There could be a very good reason – since the block subsidy cut in half in May 2020, when miners’ earnings in BTC fell 50%, the USD value of their earnings has skyrocketed.

“Despite the decline in BTC revenues, USD miners’ sales have still increased 550% since halving in 2020, reaching an ATH of $ 62 million or more per day,” analysts Glassnode said commented on Monday.

An accompanying diagram shows the extent to which miners are using their positions and how it has paid off for Hodl during the current four-year halving cycle.

As Cointelegraph noted, the behavior of miners in the fourth quarter was very different from the beginning of the year.

Flows were significantly higher in the first quarter, although BTC / USD is trading at relatively much lower levels than it is today.

Hash rate shows “absolute resilience”

The optimistic mood among the miners is accompanied by a corresponding “just up” story for the mining hash rate.

As a measure of the computing power devoted to maintaining the blockchain, the Bitcoin network’s hash rate continues to bounce back from the volatility caused by the Chinese ban in May.

In record time, the index eliminated all but the impact of the event as miners moved to the U.S. and elsewhere and existing operations expanded their capabilities.

“The recovery from China’s mining ban has made the sheer resilience, robustness and decentralization of the Bitcoin network visible to all,” LeClair wrote on Twitter. comment.

The hash rate varies depending on the estimate used, as its accuracy cannot be precisely calculated. Blockchain’s seven-day average at press time says 161 exahashes per second (EH / s) with an all-time high of 168 EH / s.

In addition to the hash rate, the network difficulty will only increase after eight consecutive increases.

In 5 days, at current prices, the difficulty level should increase by about 3% to 22.33 trillion – which even closed at an all-time high before the fall of China.

CPI inflation concerns due to

Inflation remains the name of the game in the macro markets, where it continues to pose a headwind to Bitcoin’s appeal as a hedge.

Related: Top 5 Cryptocurrencies You Should See This Week: BTC, DOT, LUNA, AVAX, EGLD

With US consumer price index (CPI) data released this week, expect the “gap” between forecast and reality to widen.

The Federal Reserve, an analyst told Bloomberg, recently signaled that it will reduce asset purchases, possibly even being forced to change course due to the current environment.

“We believe there is an upside risk on both CPI numbers, so there is a real risk that the Fed may actually accelerate the pace of asset purchases,” said Citigroup investment specialist Mahjabeen Zaman.

As noted by Cointelegraph, the CPI itself is a poor measure of inflation as it excludes many of the assets that are seeing the greatest gains in value and price.

This has led to calls for the introduction of Bitcoin to maintain the purchasing power of both individual savers and wealthy companies, and was a key factor in MicroStrategy’s move to convert a large chunk of your balance sheet into BTC.

CEO Michael Saylor said in a separate media interview last week, “I think the killer use case for Bitcoin is store of value and treasure reserves for a single family, company, government or organization or trust.

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