LTH Starts “Selling Strongly” – 5 Things To Consider With Bitcoin This Week
Bitcoin started the new week with a race for all-time highs (ATHs) as the bulls took control of the daily and weekly closing dates at the last minute.
A week of sideways Bitcoin price movement ended at exactly the same time as the week’s close and has bounced back towards $ 66,000.
This move has become all too well known in the past few weeks and attention is now turning back to the bullish results.
Monday has yet to set the bar for the third week of Moonvember, which still has a month-end price target of $ 100,000.
Can Bitcoin Get There? Here are five factors that could help shape the course in the coming days.
Weekly closure makes bears “face down”
For those concerned about what happened on Sunday, it was unnecessary – Bitcoin didn’t disappoint.
Having been mostly sideways for the whole week, BTC / USD took the classic opportunity to close a weekly ATH candle above USD 65,500.
A last minute profit of $ 1,000 is characteristic of the behavior over the past few weeks.
As a result, Bitcoin’s weekly closing price months ago was seen as an important test of overall strength.
For renowned analyst TechDev, the weekly close was important for another reason as well, as it exceeded the Fibonacci level of 1.618, replicating the action that acted as a stepping stone during both the 2013 and 2017 bull runs.
#BTC just opened and closed a week above the log 1.618.
That was important in the past. pic.twitter.com/DBsq4OwI8X
– TechDev (@ TechDev_52) November 15, 2021
“Are you ready for what’s to come? Personally, I don’t see this time any different for Bitcoin, ”TechDev added in a statement post specifically about Fibonacci.
At press time, BTC / USD is trading at $ 66,000 and quickly hit that zone as an overnight high.
Bitcoin price chart | Source: Tradingview
Others argued that the taproot soft fork launch on Sunday hadn’t been priced in yet. As Bitcoinist noted, major upgrades often lead to significant price spikes, as was the case with Segregated Witness (SegWit) in 2017.
Charles Edwards, CEO of investment firm Capriole, Written:
“The market has not yet set a price for the Bitcoin Taproot upgrade.”
Bitcoin will likely still hit $ 135,000
Say what you want about analyst PlanB’s worst-case projections for bitcoin price at the end of the month.
After PlanB correctly predicted the monthly closing price of BTC three times in a row, PlanB now says that $ 98,000 on December 1 and $ 135,000 on January 1, 2022 can still hit targets.
$ 98K Nov and $ 135K Dec predictions still in play pic.twitter.com/Df9CsxTdEj
– PlanB (@ 100 trillion USD) November 14, 2021
Not just PlanB, many analysts are targeting at least $ 85,000 in the coming weeks.
Another study shows how cyclical Bitcoin really is – before 2013.
No matter how you feel #bitcoin has been serious about these trend lines for 9 years.
Once it breaks the midline, it will really move up. pic.twitter.com/sU4NytFlel
– Jordan Lindsey (@jclcapital) November 13, 2021
Bull market distribution has started
When you look at what long-term (LTH) holders are doing, it looks like Bitcoin has entered the final chapter of a bull market – but also the most volatile.
Data from on-chain analytics firm Glassnode shows that LTH has stopped net accumulation and is now selling itself.
Marked by these bull runs, “Sell in the Rush – the act of selling a long or short position when the price of an asset moves up” marks LTH’s first net decline since April when BTC / USD made a high of 64,900 USD is reached and the cap is held for six months in office.
“LTH buys BTC when it’s weak and sells when it’s strong. We have just received our first red mark on the change in LTH’s net position in over 6 months, indicating that the bull market spread has begun. “
LTH Bitcoin position change graph | Source: William Clemente / Twitter
Last time, in the fourth quarter of 2020, LTH started selling before Bitcoin price skyrocketed, with the distribution peaking and then falling before hitting an ATH of $ 64,900.
Hashrate back to ATH
One aspect of Bitcoin that is really hitting ATH this week is hashrate.
According to data from the live monitoring resource MiningPoolStats, with no peaks and troughs in the raw data, the hashrate is currently around 168 exahashes per second (EH / s).
Bitcoin hashrate raw data graph | Source: MiningPoolStats
The graph above shows the progress since the miners’ flight from China began.
While the hashrate, a description of mining-specific computing power, can only be estimated and not measured precisely, the metric is now breaking new ground for the first time in almost half a year.
#Bitcoin Last week’s hash rate: 160.6 EH / s
160,600,000,000,000,000,000 hashes per second pic.twitter.com/yA1GSvn52x
– Dylan LeClair (@DylanLeClair_) November 13, 2021
Difficulty, arguably the most important indicator of Bitcoin’s core strength, continues to return to the ATH level. On Sunday it rose by 4.7%, marking the ninth profit in a row.
When you turn away from Bitcoin, traditional markets begin to anger – and not just investors.
In a meeting last week, Raghuram Rajan, the former governor of the Reserve Bank of India, raised the alarm over the overgrowth in stocks.
He talks about the Nomura Wolfe basket of popular US stocks as reviewed by the Financial Times quote Among other shops:
“There are clear signs of a bubble” (an indication that investor behavior and decisions are driven by emotion).
“Everything seems crazy, there are bubbles here, bubbles there and everywhere. It is becoming a cliché, but we are really in uncharted territory, very unusual territory, ”warned Erik Knutzen, Chief Investment Officer at Neuberger Berman.
While November has traditionally been a stable month for both the financial and crypto markets, it also fueled existing doubts about the “just-up” nature of stocks in particular.
For bitcoiners, the issue hangs on the overall correlation between the two – although bitcoin has gone its separate ways in the past few months, bitcoin can still be hit by abrupt mood swings around the world.
A good example is Tesla, which failed along with Bitcoin last week after a 10% sell-off in CEO Elon Musk’s shares.
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According to Cointelegraph