Bitcoin (BTC) begins the new week with a race to all-time highs as bulls save the day – and the week – at the last minute.
A week of sideways price action in BTC ended just in time with the end of the week when Bitcoin returned to the $66,000 mark.
This is a classic move that has become very popular in recent weeks and is now focused once again on bullish results.
With Wall Street still open, Monday has yet to set the tone for the third week of “moonlight evening,” with the month-end price target still close to $100,000.
Could Bitcoin Get There? Cointelegraph looks at five factors that could help shape the course of BTC in the coming days.
Weekly closing leaves no room for bears
For those worried about what will happen at the end of Sunday’s week, there was no need – Bitcoin did not disappoint.
After sideways tracking for most of the week, BTC/USD hit a classic high to hit a new all-time high in a week that pushed it to $65,500.
Gains came in at $1,000 in the last hour, which is typical of the behavior of recent weeks.
Thus, Bitcoin closed the multi-month weekly trend chart that was previously considered an important test of overall strength.
For the famous analyst TechDev, the close was great for another reason: it broke above the 1618 Fibonacci level and thus mimics the move that served as a springboard during the 2013 and 2017 bulls.
“Are you ready for what lies ahead? Personally, I am not sure that this time will be different for Bitcoin,” he added in a separate Fibonacci post.
At the time of writing, BTC/USD was trading at just under $66,000 after briefly hitting an overnight high.
Others have argued that Sunday’s Taproot soft fork rollout has not yet been properly evaluated. As Cointelegraph notes, major updates have been followed by significant price increases, as was the case with Segregated Witness (SegWit) in 2017.
“The market did not take into account the massive update of Bitcoin Taproot,” Charles Edwards, CEO of investment firm Capriol wrote.
$135,000 ‘still in operation’
No matter what you say about the PlanB analyst’s series of worst-case forecasts at the end of the month, he sticks to his estimates.
After speculating that BTC will close every month for nearly three consecutive months, PlanB now says that $98,000 by December 1 and $135,000 by January 1, 2022 are still achievable goals.
He’s not alone – as Cointelegraph reports, multiple sources expect the move to at least $85,000 in the coming weeks.
As volume increases, other studies have been added to PlanB’s stock flow models that show what cyclical Bitcoin really was – even from as early as 2013.
However, last week’s predictions indicated that although bitcoin will hit $250,000 in January, it will eventually refute one of the stock-flow models for good.
“Beef Market Distribution Begins”
Could this be the beginning of the end of the Bitcoin bull run for this cycle?
If we look at what the long-term (LTH) holders are doing, it appears that Bitcoin has entered the last, but most volatile, chapter to the upside.
Data from chain analyst firm Glassnode, highlighted by analyst William Clemente, shows that LTH investors have stopped hoarding the network and are now dumping coins.
This “sell”, which features beef tops, marked the first net contraction in the LTH portfolio since April, when BTC/USD peaked at $64,900, which has remained a six-month ceiling.
“Long-term owners are buying bitcoin for weakness and selling for strength,” Clemente commented.
“We have just received our first red print of a 6-month net LTH position change, which indicates that the beef market distribution has begun.”
Bitcoin LTH Position Change Chart. Source: William Clemente / Twitter
The last time, in the last quarter of 2020, LTH started selling before the bitcoin price surged, when the distribution peaked and then declined before hitting a record high of $64,900.
The hash rate is back to an all-time high
One aspect of Bitcoin that has already reached all-time highs this week is the hash rate.
After a quick but prolonged recovery from a disaster five months ago, the spine is now measuring what it was doing in late April and early May.
According to the real-time monitoring resource MiningPoolStats, excluding peaks and dips in the raw data, the hash rate is approximately 168 EH/s.