Bitcoin Re-gains $37,000 Mark; Dormant Supply and Network Fundamentals Stir Bull Market Hope
Summary:
In the week leading up to Thanksgiving, Bitcoin (BTC) has risen back to the $37,000 mark with bull traders standing their ground. Domains of coins that have been dormant for a year now account for over 70% of the supply for the first time, suggesting reluctance among long-term holders to sell. Overall, Bitcoin's network fundamentals portray a positive 2023 outlook. Despite fluctuating prices, the calm among Bitcoin traders, paired with the coin's strong dominance over altcoins, continues to raise hopes for the classic cryptocurrency bull market.
Entering the week of Thanksgiving in the U.S., Bitcoin (BTC) regains its $37,000 mark as optimists firmly maintain their position. BTC's value lurks tantalizingly near the highs of the last 18 months, with the latest weekly closing hinting at the strength of the bullish market. Despite a slow rise in Bitcoin's value compared to past weeks, the leading cryptocurrency is still up 7% month-to-date, holding on to regained ground.
Upcoming macroeconomic data releases may trigger quick shifts in volatility; however, Bitcoin's network fundamentals remain positive for 2023. Interestingly, coins lying dormant for a year or more now make up over 70% of the supply, suggesting long-term holders' hesitation to cash in on high prices. Bitcoin's dominance persists, stirring anticipation of a typical cryptocurrency bull market re-emergence.
Following an optimistic weekly close with Bitcoin reaching $37,500, BTC fell short of sustaining this level. Currently, as of Nov. 20, BTC is trading around the $37,000 mark. A surge in demand for spot BTC would be required to crack the $40K resistance, according to prominent trader Skew.
The market expects Bitcoin to maintain its current trading range in the short term. Michaël van de Poppe, founder and CEO of trading firm Eight, suggests watching the support at $33-34.5K for long entries. He predicts a lower sweep, possibly beneath $36K, before hitting new highs again.
Potential targets for a downward trajectory include marks at $33,000 and below $31,000. However, market data indicates a calmer trading atmosphere comparisons to Bitcoin's first 18-month high spike last week, with open interest and funding rates remaining neutral.
For this month, BTC/USD has shown a modest increase of 7%, marking its best November performance since 2020. Trader Daan Crypto Trades highlights that despite a seemingly low market sentiment, Bitcoin remains positive for the month.
This U.S. Thanksgiving week sees a quiet release schedule of macroeconomic data providing some respite for crypto traders. Highlights include jobless claims data due on Nov. 22.
Bitcoin's network fundamentals remain at or near record highs. Both hash rate and mining difficulty are in full bull mode this year with minor setbacks. However, these positive signs do not come without some cautionary flags. Analysis warns that historically, new hash rate highs have led to a price drop in Bitcoin.
Bitcoin dominance over altcoins continues, indicating the early stages of a classic cryptocurrency bull market. Bitcoin accounts for about 52.5% of the total cryptocurrency market cap, significantly higher than its year-to-date lows of around 40%.
In terms of dormant supply, a record has been set with more than 70% of the mined BTC supply lying inactive for at least a year. Despite a 139% surge in Bitcoin's value over the past year, these coins have not sold or transferred. This shows a strong conviction among long-term holders.
Please note, this article does not offer investment advice or recommendations. It is imperative to conduct your own research before making any investment or trading decision, as they involve risk.
Published At
11/20/2023 9:59:36 AM
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