Why could Bitcoin break all odds after setting a new ATH?
Bitcoin has broadly benefited from positive upward moves this week. The top cryptocurrency rebounded yesterday, moving away from the lows of current levels and breaking all barriers at $ 66,428 to establish a new ATH at $ 68,641.
BTC price 4-hour chart | The source: Trade view
General market sentiment appears to be recovering after a week of sideways price movements. This period of consolidation gave the bulls enough strength to break the “heavy dollar” resistance at $ 67,000.
In the lower timeframe, as shown below, BTC price accumulated support at $ 65,000 after that level moved from resistance to support. The chart uses CVD data to determine buying / selling pressures across different price levels.
There are roughly $ 33 million in letter orders at the $ 67,000 mark, which is the biggest obstacle for the cops to get Bitcoin back into the pricing zone. Similarly, at $ 65,000 there is about $ 16 million in bids, which is good short-term support.
Source: material indicators
According to other data from Material Indicators, buying pressure from whales and medium-sized investors has increased. Research firm Santiment is also showing the same thing as the number of addresses with more than 10,000 to 100,000 BTC has accumulated more than 43,000 BTC in the past 5 days, providing more fuel for Bitcoin.
The source: mood
Bitcoin investors seem increasingly to be hoping for higher prices, with the percentage of Bitcoin supply dormant in the past 3 months exploding to a record high of 85%.
On-chain analytics provider Glassnode achieved this important milestone in report “The Week Onchain” on November 8th concludes: “Investors don’t spend their coins.”
Addresses that have not moved BTC for 12 months (so-called “Long-Term Holders” – LTH) are among the most active hamsterers – although they only move 6,500 BTC per day.
The accumulation trend does not appear to be slowing, with the proportion of supply held on centralized exchanges also dropping to a record low of 12.9% as more and more BTC is securely stored.
Glassnode reports that more than 5,000 BTC (about $ 338.6 million) has been withdrawn from central exchange locations in the past week.
“The market may still be in a phase of calm accumulation. This is reflected in low activity, large floor drains and very modest strategic expenditures by experienced owners. “
The report notes that LTH, which spiked bitcoin accumulation, also preceded the all-time high hit in April.
LTH’s bitcoin supply rate peaked at 80.6% in August 2020, before peaking at around $ 66,000 in April 2021.
Since the price of $ 66,000, LTH has spent 0.73% of the Bitcoin supply, reducing the supply to around 68%.
The revived offer last worked more than a year ago | Source: Glassnode
Bitcoin price confirmed at $ 60,000?
In support of the bullish thesis, analyst Willy Woo presented the Bitcoin Supply Profile indicator. According to Woo, this metric shows the dynamics of the BTC market and the trading of the coins in 2021, and signals that investors have accepted the USD 50,000-60,000 levels as an important area of support.
Contour map of each bitcoin at the price at which they last changed hands. Huge price validation between $ 50,000 and $ 60,000.#Bitcoin IMO is now cemented as an asset class of 1 thousand US dollars; hard to see it falls under that zone.
– Willy Woo (@woonomic) November 8, 2021
“Map each bitcoin according to the price at which it was last traded among investors. Price confirmation of $ 50,000-60,000. Bitcoin as a $ 1 trillion asset is now firmly underpinned, it’s hard to see it falling under that zone. “
However, the analyst CryptoBirb has currently a potential scenario for bitcoin price after it has risen to current levels. He believes BTC could retest to $ 60,000 before the bulls build enough momentum to push the price to $ 80,000.
“BTC is about to pull out of a new ATH and the players trying to darken the outbreak will eventually gain momentum so it can break the $ 80,000 mark (…).”
The next few days will be crucial in determining whether Bitcoin will retest the lows in this zone or continue to strive towards $ 100,000 by the end of the year?
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According to AZCoin News