Bitcoin is experiencing a gradual shift following recent rapid price gains. Despite a return to $37,000 at the beginning of Thanksgiving week in the United States, the cryptocurrency’s bullish trend remains firm, with prices hovering near 18-month highs. The month-to-date increase is 7%, indicating a sustained upward momentum, albeit at a slower pace than previous weeks.
Supply dynamics in the Bitcoin market reveal an interesting trend — more than 70% of the coins have been dormant for over a year, signaling a hesitancy among long-term holders to sell despite potential price increases. This, coupled with Bitcoin dominance holding strong, raises hopes of a nascent crypto bull market.
- Bitcoin Price Retracement and Trading Outlook Bitcoin achieved a weekly close at $37,500 but faced challenges in maintaining this level. Analysts note considerable supply resistance towards $40,000, suggesting a need for persistent demand to surpass it. The current market sentiment indicates a range-bound trading phase, with resistance at $38,000 and support at $33,000-$34,500.
- November Performance and Macroeconomic Factors Despite modest gains of 7% in November, Bitcoin’s performance remains commendable. The upcoming week, coinciding with U.S. Thanksgiving, introduces macroeconomic data releases, with jobless claims on November 22 likely to influence short-term market momentum.
- Bitcoin Network Fundamentals and Potential Warning Signs Bitcoin’s network fundamentals are robust, with both hash rate and mining difficulty in a bullish trend. However, historical data suggests that new hash rate highs may precede a price downturn. The optimistic outlook is tempered by the possibility of a retracement towards the $30,000 mark.
- Bitcoin Dominance and Altcoin Dynamics Bitcoin continues to dominate the cryptocurrency market with around 52.5% of the total market cap. While this is slightly lower than the month’s start, it remains significantly higher than year-to-date lows. The market sees altcoins retracing after a month of rapid gains, with Bitcoin’s dominance potentially contributing to the overall market’s stability.
- Long-Term Holder Resolve and Dormant Supply A notable bullish indicator is the high percentage (over 70%) of Bitcoin supply that has remained dormant for over a year. This suggests a strong resolve among long-term holders to “hodl” despite significant price increases over the past year.
In summary, Bitcoin’s current landscape presents a mix of positive indicators and cautionary signals. As the market navigates potential retracements and external economic influences, the behavior of long-term holders and dormant supply adds an intriguing layer to the cryptocurrency’s dynamics.
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This information is not legal advice. Do your own research before making any decisions. Only invest what you can afford to lose and seek independent financial advice if needed. Understand the risks involved before purchasing any cryptoassets.