Bitcoin (BTC) kicks off the new week with peaks in many ways, as BTC / USD records its highest weekly close ever.
After days of painfully slow progress, Bitcoin finally made a breakout to break through critical levels.
Now ready to move on to a “parable,” as some have argued, the largest cryptocurrency to date is back in traders’ sight after a week dominated by record-high cryptocurrencies.
Can Moonvember live up to its name? Cointelegraph is looking at what could ultimately move the market off the ground.
A large gap opens in futures contracts when BTC exceeds $ 65,000.
It took a week of patience, but in the end the bulls were rewarded on Sunday night as bitcoin soared, reclaiming its all-time high of $ 64,900 since April.
As is often the case with bullish waves, the rate of advance was high: just one hour of candles, and then $ 2,000 was added to the spot price.
Timing was impeccable just before the weekly close was approaching, setting a new all-time high of $ 63,270 on the weekly chart.
As expected, the feedback was mostly positive and higher expectations returned in the short term.
“Resistance is useless,” summarized podcast host Scott Melker, along with a chart showing the breakout of the Bitcoin trend.
Aside from the all-time weekly rally, another milestone came for the broader crypto market – when the total market value of all tokens surpassed $ 3 trillion for the first time.
As Cointelegraph reports, there is still optimism about Bitcoin’s long-term potential, and opinions gathered around the idea that the bulk of this cycle’s earnings is yet to come.
“People who think it is too late to buy bitcoins do not realize how high they are in this cycle,” added a well-known analyst at Rekt Capital.
Meanwhile, Philbfilb, an analyst and co-founder of the Decentrader trading platform, named one of the few possible reasons for the correction in the form of a gap in CME futures.
Given that markets open significantly higher on Monday than they closed on Friday, the chance remains that the spot price will return shortly below to “fill” the gap — in line with historical patterns.
“It looks pretty optimistic, it may return to the CME gap, but overall it looks like a fire,” he told Telegram subscribers.
4-hour candlestick chart for CME Bitcoin futures. Source: TradingView
Funding is growing due to “extreme greed”.
In addition to breaking the CME, another derivative signal can send a cat among the pigeons in short periods of time.
The data at the time of writing showed that cross-exchange funding rates are moving towards volatile territory.
Although not as high as during the October rally to $ 67,000 and above, very positive funding often results in price corrections as traders are satisfied with the market’s aspiration.
But for analyst Dylan Leclerc, this was not a major concern, as there were no clear signs of an increase in the number of long-term loan agreements.
He told his Twitter followers, “BTC + $ 2,000 in the last two hours with no significant increase in forward rates or personal finance.”
“The current price action is the result of fatigue from spot selling, not a sudden increase in influence. Lack of liquidity in sales = gap up. ”
BTC Financing price chart. Source: Coinglass
Meanwhile, the general market sentiment is moving towards “extreme greed” as measured by the Crypto Fear & Greed Indicator.
However, at the 75/100 level, the indicator shows that at least 20 points still need to be driven before entering the classic high conditions.
An index of fear and greed in cryptography. Source: Alternative.me
Miners still don’t sell – that’s why
With all-time highs on the horizon, bitcoin miners continue to show strong resolve and “walk” rather than sell their bitcoins.
The data of the analytical service CryptoQuant in the chain shows that the outflow of funds from wallets, with a few exceptions, has not changed in recent weeks and months.
Churn chart for Bitcoin mining. Source: CryptoQuant
This could be a very good reason – since block support was cut in half in May 2020, when miners’ BTC revenue fell 50%, their USD revenue increased.
“Despite this decline in bitcoin-denominated revenues, mining revenues in USD have fallen in half by 550% since 2020, close to ATH of $ 62 million per day,” research firm Glassnode commented on Monday.
The accompanying chart shows how much miners are benefiting from their positions and how much they paid to collect during the current four-year halving cycle.