Bitcoin (BTC) starts Thanksgiving week in the United States with a return to $37,000 as bulls stubbornly refuse to loosen their grip.BTC price action
Bitcoin (BTC) starts Thanksgiving week in the United States with a return to $37,000 as bulls stubbornly refuse to loosen their grip.
BTC price action remains tantalizingly near 18-month highs as another weekly close provides a fresh taste of bull market momentum.
The largest cryptocurrency continues to hold onto reclaimed ground, and while upside now comes slower than in previous weeks, BTC/USD is up 7% month-to-date.
How could the coming days shape up for Bitcoin?
Macroeconomic data prints provide the opportunity for some snap volatility, while under the hood, the landscape when it comes to Bitcoin’s network fundamentals is as rosy as it has ever been in 2023.
At the same time, supply dynamics are surprising — coins dormant for a year or more now make up over 70% of the supply for the first time, indicating a reluctance among long-term holders to “sell the rip.”
Bitcoin domnaince is also staying strong, leading to hopes that a classic crypto bull market is once again in its early innings.
Cointelegraph takes a look at these factors and more as part of the weekly rundown of all things moving BTC price action in the coming week.
Bitcoin traders maintain BTC price retracement odds
Bitcoin delivered a suitably buoyant weekly close with a trip to $37,500, but subsequently failed to hold that level.
In an ongoing expression of the difficulty of reclaiming higher ground as support, BTC price action is now back around the $37,000 mark as of Nov. 20, per data from Cointelegraph Markets Pro and TradingView.
“Considerable supply above price & towards $40K,” popular trader Skew noted in part of his latest social media analysis.
“This will take persistent demand for spot BTC to crack imo. Bullish confirmation is seeing limit bids move up closer to price here, that would signal for higher prices & demand.”
With hours to go until the Wall Street open, the sense among some market participants is one of rangebound trading continuing for the short term.
“Bitcoin clearly making a range construction here,” Michaël van de Poppe, founder and CEO of trading firm Eight, told X subscribers as the weekly candle completed.
“Resistance at $38K, while support at $33-34.5K is the one to watch for long entries. I think we’ll sweep slightly lower (maybe slightly beneath $36K) before we revisit highs. Needs to hold the trend.”
The concept of a retracement to test recent liquidity is nothing new. As Cointelegraph reported, downside targets include a trip to $33,000 and even below $31,000.
Unlike its initial push to 18-month highs last week, however, Bitcoin market data shows a much calmer atmosphere among traders, with both open interest (OI) and funding rates staying neutral.
#Bitcoin Some shorts pushed out on that push before the weekly close.
Overall open interest still quite low compared to a few weeks back. Funding rates neutral.
If you’re looking for an exchange to trade on, Consider Bybit and support me:
https://t.co/rIxsG0GIWl pic.twitter.com/mtn3aNTfvv— Daan Crypto Trades (@DaanCrypto) November 20, 2023
BTC/USD remains up 7% in November — modest gains, yet still the pair’s best performing November month since 2020, per data from monitoring resource CoinGlass.
“Even though the sentiment isn’t great, $BTC is still up ~5% for the month of November,” popular trader Daan Crypto Trades commented on the performance.
“December tends to be a volatile month that puts in big numbers. Bound to see a turbulent end of year I think!”
Jobs, Fed minutes lead short Thanksgiving macro week
U.S. Thanksgiving week is due to be characterized by a cool set of macroeconomic data releases in a period of relief for crypto traders.
Jobless claims mark one of the highlights of the coming days, these set for release on Nov. 22.
While Bitcoin has overall become less susceptible to macro-induced volatility this year, unemployment surprises have nonetheless succeeded in injecting short-term momentum in the past.
After last week’s data prints showed U.S. inflation cooling faster than markets expected, however, market participants are in “wait and see mode” ahead of the next decision on interest rate changes due in mid-December.
So far, consensus is practically unanimous on current levels remaining in place at the Federal Reserve’s Federal Open Market Committee (FOMC) meeting, per data from CME Group’s FedWatch Tool.
The Fed will release the minutes of its previous FOMC meeting this week.
Key Events This Week:
1. Existing Home Sales data – Tuesday
2. Fed Meeting Minutes – Tuesday
3. Core Durable Goods Orders – Wednesday
4. Initial Jobless Claims – Wednesday
5. US Markets Closed for Thanksgiving – Thursday
6. US Markets Close at 1 PM ET – Friday
Happy…
— The Kobeissi Letter (@KobeissiLetter) November 19, 2023
“Short week, but still some important events to watch. The Fed meeting…
cointelegraph.com
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