Bitcoin (BTC) begins the second week of November still holding strong near 18-month highs — where might BTC price moves head next?The largest cryptocu
Bitcoin (BTC) begins the second week of November still holding strong near 18-month highs — where might BTC price moves head next?
The largest cryptocurrency has fought off sell pressure to seal another impressive weekly close.
In what analysis is increasingly describing as a change in sentiment, Bitcoin and altcoins alike are refusing to retrace gains which first kicked in over one month ago.
Amid a torrid macroeconomic environment, crypto is striking out on its own where assets such as stocks are feeling the pressure, and bulls are hopeful that the upside is not yet over.
Plenty of potential volatility triggers lie in store in the coming week. With inflation still on everyone’s mind, the United States Federal Reserve will deliver a round of remarks as part of planned engagements, with Chair Jerome Powell among the speakers.
A short trading week on Wall Street will mean an extended period of “out-of-hours” trading next week, allowing crypto to potentially see more volatile moves into the next weekly close.
Behind the scenes, Bitcoin is technically as resilient as BTC price action suggests — hash rate and difficulty, already at all-time highs, are due to add to their record tally in the coming days.
Cointelegraph delves deeper into these issues and more in the weekly overview of what to expect when it comes to Bitcoin market activity in the short term and beyond.
Bitcoin bulls refuse to give an inch
Like last week, Bitcoin did not disappoint with the weekly candle close into Nov. 6.
At just over $35,000, the close in fact set a new 18-month high, and preceded a bout of volatility which saw a brief trip to just below the $36,000 mark, data from Cointelegraph Markets Pro and TradingView shows.
A fierce tug-of-war between buyers and sellers means that current resistance levels are proving hard to overcome, while liquidations mounted at the close.
As noted by popular trader Skew, the hourly chart suggests that “both sides of the book were swept” on exchanges.
On Nov. 5, Skew additionally showed increasing open interest (OI) on largest global exchange Binance — a key prelude to volatility in recent weeks.
$BTC
OI and perp delta here is literally people longing LTF highs and shorting LTF lowsOI continues to ramp up on binance ~ important for early next week pic.twitter.com/2bfc9Q2SwG
— Skew Δ (@52kskew) November 5, 2023
Continuing, fellow trader Daan Crypto Trades referenced funding rate data showing longs paying shorts.
“There’s still quite a lot of positions that opened during the weekend so I’d expect some further volatility after the futures open and on Monday to take those out (on both sides),” part of X commentary read at the time.
As Cointelegraph reported, bets among market participants include $40,000 as a popular BTC price target. The timing is up for debate, but predictions for the end of 2023 revolve around even higher levels.
For the meantime, however, more conservative approaches remain. Among them is popular trader Crypto Tony, who over the weekend told X subscribers not to bet on bulls sweeping through resistance.
“I am only short if we lose that support zone at $34,100, and will close my current long position if we lose $33,000,” he wrote, updating his current trading strategy.
“I would not recommend longing here into resistance at all.”
Fed speakers lead macro week
With a break from U.S. macroeconomic data prints this week, attention is once more on the Fed as a source of market volatility.
Various speaking engagements over the week prior to the Veterans Day holiday on Nov. 10 will see officials including Chair Powell take to the stage.
The timing is perhaps more noteworthy than the speeches themselves — the Fed continued a pause in interest rate hikes last week, this despite the data showing inflation beating expectations.
Previous comments have directed markets away from expecting a pivot in rates policy until well into next year. Per data from CME Group’s FedWatch Tool, bets for the outcome of the next rates decision, due in just over one month, are for a repeat pause.
“All attention remains on the Fed,” financial commentary resource The Kobeissi Letter wrote in X comments on the upcoming macro diary.
Key Events This Week:
1. Fed Chair Powell Speaks – Wednesday
2. Initial Jobless Claims – Thursday
3. Fed Chair Powell Speaks – Thursday
4. Consumer Sentiment data – Friday
5. ~10% of S&P 500 reports earnings this week
6. Total of 12 Fed speaker events
All attention remains…
— The Kobeissi Letter (@KobeissiLetter) November 5, 2023
Kobeissi added that volatility may continue in the coming days on the back of turbulence on bond markets. Stocks also saw notable changes last week, with the S&P 500 making an abrupt about turn after dropping through the second half of October.
Continuing, investment research platform Game of Trades suggested that “major economic volatility” is on the…
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