‘Resistance is useless’ – 5 things to watch in Bitcoin this week – News Couple
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‘Resistance is useless’ – 5 things to watch in Bitcoin this week


Bitcoin (BTC) starts a new week with highs in more than one way as BTC/USD seals its highest ever weekly close.

After days of painfully slow progress, Bitcoin finally put in a breakout move to the upside to pass crucial levels.

Now ready to go”parabolaSome argue that the biggest cryptocurrency is now back in force on traders’ radar after a week dominated by record highs in altcoins.

Will ‘Moonvember’ start living up to its name? Cointelegraph takes a look at what could end up moving the market in the coming days.

Huge gap opens in futures contracts as BTC surpasses $65,000

It took a week of patience, but the bulls were finally rewarded overnight on Sunday when bitcoin soared, reclaiming its all-time high of $64,900 since April.

As is often the case during bullish waves, the pace of gains was fast, with only a one hour candle seeing $2000 added to the spot price.

The timing was impeccable, coming just before the weekly close loomed, thus allowing for a new record high of $63,270 for the weekly chart.

As expected, the feedback was overwhelmingly positive with the return of higher expectations in the short term.

“Resistance is useless,” podcast host Scott Melker sum up Besides the chart showing the Bitcoin trend breakout.

Alongside the all-time weekly rally came another milestone for the broader crypto market – the combined market cap of all tokens crossed $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’s share of this cycle’s returns is yet to come.

“People who think it’s too late to buy bitcoin don’t realize how high it has gone in this cycle,” famous analyst Rekt Capital said. added.

Meanwhile, Filbfilb, analyst and co-founder of trading platform Decentrader, cited one of the few possible reasons for the correction in the form of the CME futures gap.

Given the markets on Monday will open much higher than where they closed on Friday, the possibility of the spot price going back lower for a brief period to “fill” the resulting gap – in line with historical patterns – remains.

“Looks pretty bullish, might fall back into the CME gap, but it looks like a fire IMO in general,” he told Telegram channel subscribers.

4-hour candlestick chart for CME Bitcoin futures. Source: TradingView

Funding grows as ‘extreme greed’ awaits

Aside from the CME gap, another derivative signal may put the cat among the pigeons in short time frames.

Data at the time of writing showed that cross-exchange funding rates were heading toward unsustainable territory.

Although it did not rise to $67,000 and above in October, very positive funding often leads to a price correction as traders turn to be satisfied with the market’s longing.

But for analyst Dylan Leclerc, this was not a major concern, as there were no clear signs of an increase in long contracts with leverage.

he is Tell Twitter followers.

“The current price action is the result of spot selling fatigue, not the result of a sudden increase in leverage. No sell-side liquidity = an upward gap.”

BTC funding price chart. Source: Coinglass

Meanwhile, the overall market sentiment is moving towards “extreme greed”, as measured by the Crypto Fear & Greed Indicator.

However, at 75/100, the indicator indicates that there are still at least 20 points to run before entering the classic high conditions.

Fear and Greed Index in Cryptography. Source: Alternative.me

Miners Still Not Selling – Here’s Why

With all-time highs on the horizon, bitcoin miners continue to show strong resolve and “hoddle,” not selling their bitcoins.

Data from on-chain analytics service CryptoQuant shows that wallet outflows, with a few exceptions, have been flat in recent weeks and months.

Bitcoin mining outflow chart. Source: CryptoQuant

There could be a very good reason – since the block support halving in May 2020, when miners’ earnings in terms of BTC fell by 50%, the value of their income in US dollars has gone up.

“Despite this drop in bitcoin-denominated income, miners’ revenue in US dollars has halved 550% since 2020, approaching an ATH of $62 million per day,” fellow analytics firm Glassnode hung on Monday.

The accompanying chart showed how much miners are benefiting from their positions and how they have paid to collect during the current four-year halving cycle.

Bitcoin miner returns against BTC/USD annotated chart. Source: Glassnode / Twitter

As Cointelegraph previously noted, miners’ behavior in the fourth quarter differs significantly from the beginning of the year.

Outflows in the first quarter were significantly higher, despite the fact that BTC/USD was trading at relatively lower levels than today.

Hash rate shows ‘absolute flexibility’

A bullish mood among miners accompanies a “only bullish” narrative of hash rate mining.

A measure of the processing power dedicated to maintaining the blockchain, the Bitcoin network hash rate continues to recover by leaps and bounds from the turmoil caused by the Chinese ban in May.

In record time, the scale has nearly negated the impact of the event as miners move to the United States and elsewhere and existing operations add to their capabilities.

“The recovery that followed the mining ban in China demonstrated the sheer resilience, robustness and decentralized nature of the Bitcoin network for all to see,” LeClair wrote on Twitter. comments.

The hash rate varies depending on the estimate used, as its exact level cannot be calculated exactly. The seven-day Blockchain averaged 161 Exahs per second (EH/s) at the time of writing, with an all-time live high of 168 EH/s.

Chart of the average hashrate of bitcoin over the course of 7 days. Source: Blockchain

Other than the hash rate, the network’s difficulty remains set to make additional gains after it has already experienced eight straight increases in a row.

In five days, at current prices, the difficulty will rise by another 3% to 22.33 trillion – itself approaching its all-time high before the China disaster.

Inflation fears as CPI data is due

Inflation is still the name of the game in macro markets while still being a useful headwind of Bitcoin’s allure as a hedge.

Related Topics: Top 5 Cryptocurrencies to Watch This Week: BTC, DOT, LUNA, AVAX, EGLD

With the release of US Consumer Price Index (CPI) data this week, expectations are that the “disconnection” between expectations and reality will widen.

One analyst told Bloomberg that the Federal Reserve, which recently indicated it will scale back asset purchases, may have to change course due to the current environment.

“We see that there is an upside risk in each of these CPI numbers and as a result, there is really a risk that the Fed will accelerate the pace of asset purchases,” said Mohgabin Zaman, chief investment strategist at Citigroup.

As previously reported by Cointelegraph, the CPI itself is a poor measure of inflation, as it excludes many of the assets experiencing the largest increases in value and price.

This has led to calls for the adoption of Bitcoin to preserve the purchasing power of both individual savers and cash-rich businesses, and has been a key factor in MicroStrategy’s move to convert huge portions of its balance sheet to BTC.