5 things to watch in Bitcoin this week

Bitcoin (BTC) starts a new week on the right foot in several ways, while BTC / USD records its highest weekly close ever.

After several days of painfully slow progress, Bitcoin has finally charted a bullish breakout beyond crucial levels.

Now ready for growth “

, ”According to some, the largest cryptocurrency returns to traders’ radar after a week dominated by record highs among altcoins.

Will “Moonvember” live up to its name? Cointelegraph takes a look at what could affect the market in the coming days.

BTC exceeds $ 65,000 and creates a large gap in futures

After a week of patience, the bulls were finally rewarded on Sunday with the Bitcoin breakout, pushing the price. above the April all-time high of $ 64,900. As is often the case during bull runs, the speed of the upside was remarkable, and a single candle on the hourly chart added $ 2,000 to the spot price.

The timing was flawless, just before the weekly close, and allowed for a new record high of $ 63,270 for the weekly chart:

“It’s going to be a great week.”

Predictably, reactions have been predominantly positive and have seen the return of even more optimistic forecasts in the near term.

Resistance is futile,

podcaster Scott Melker sharing a chart showing the breakout from the Bitcoin trend.

In addition to the record on Bitcoin’s weekly close, the crypto market has reached another milestone: the combined market capitalization of all tokens exceeded $ 3 trillion for the first time.

As Cointelegraph reported, optimism remains prevalent about Bitcoin’s longer-term potential, as opinion spreads that most of the returns from this cycle are yet to arrive. “People who believe it is too late to buy BTC do not realize how much higher it can still go in this cycle.

the well-known analyst Rekt Capital.

Filbfilb, analyst and co-founder of the Decentrader trading platform, has identified one of the few potential causes of a correction in the futures gap on the CME.

As markets will open much higher on Monday than they did on Friday, it is possible that the spot price briefly returns lower to “close” the resulting gap, in line with historical patterns.

It looks pretty bullish for now, it could correct towards the CME gap but overall I think it’s great,”He explained in his Telegram channel.

CME 4-hour Bitcoin Futures chart. Source: TradingView

Funding rates are growing and “extreme greed” is approaching

In addition to the CME gap, another clue from the derivatives markets could create problems in the short term.

At the time of writing, the data shows that funding rates on exchanges are again directed towards unsustainable territories. While not at the same level as the rally to $ 67,000 in October, the very positive funding rate often results in a price correction as the market becomes saturated with longs.

Analyst Dylan LeClair, however, doesn’t think this is too worrying, as there are no obvious signs of an increase in leveraged longs. “BTC has risen by $ 2,000 in the last two hours without major spikes in open interest from futures or funding rates for perpetual contracts,

su Twitter.

“The current price action is the result of a depletion of spot selling pressure, and not the result of a sudden increase in leverage. Lack of liquidity on the selling side = upward gap. “

BTC funding rate chart. Source: Coinglass

Meantime, general market sentiment is approaching “extreme greed,” as the Crypto Fear & Greed Index indicates. However, at 75/100, the Index suggests that at least another 20 points remain before the classic maximum conditions.

Crypto Fear & Greed Index. Fonte: Alternative.me

That’s why miners still don’t sell

With a new all-time high seemingly around the corner, Bitcoin miners continue to demonstrate strong determination and HODLare instead of selling their BTCs.

Data from the CryptoQuant on-chain analytics service shows that wallet outflows from miners, with a few exceptions, have remained flat in recent weeks and months.

Bitcoin Miner Outflow Chart. Source: CryptoQuant

There could be a very good reason behind this trend: Ever since the rewards halving in May 2020, when miners’ BTC revenue dropped 50%, the US dollar value of their income has taken off.

Despite this reduction in BTC denominated revenue, USD miners’ revenues have increased 550% since the 2020 halving, and approaching an ATH of $ 62 million a day,

on Monday the analytics firm Glassnode.

A shared chart shows the extent to which miners are leveraging their positions and how profitable HODLare has been during the ongoing four-year halving cycle.

Annotated graph of Bitcoin miners vs. BTC / USD. Source: Glassnode / Twitter

As already reported by Cointelegraph, the behavior of miners in Q4 is very different from that observed at the beginning of the year.

Outflows in Q1 were significantly higher, even though BTC / USD was at much lower levels than today.

Hash rate shows “great resilience”

The bullish sentiment among miners is accompanied by a corresponding “up only” narrative for the mining hash rate.

The hash rate of the Bitcoin network, the amount of computing power dedicated to maintaining the blockchain, continues to recover rapidly from the turbulence caused by the ban in China in May. In record time, the metric has virtually erased the impact of the event as miners move to the US or other jurisdictions and existing operations expand their capabilities.

The recovery following the ban on mining in China has shown everyone the great resilience, solidity and decentralized nature of the Bitcoin network.

LeClair.

The hash rate varies depending on the estimate used, as it cannot be calculated exactly. Blockchain.com’s seven-day average indicates 161 exahash per second (EH / s) at the time of writing, with the all-time high in real time at 168 EH / s.

Bitcoin hash rate 7-day average chart. Source: Blockchain.com

In addition to the hash rate, the difficulty of the network remains set for further growth, after recording eight consecutive increases.

In five days, the difficulty is expected to increase by about another 3% to 22.330 billion, approaching the all-time highs marked before the anti-crypto measures in China.

Inflation worries the markets

Inflation is still the focus of attention in macro markets in a scenario that continues to be beneficial to Bitcoin’s appeal as a protection.

Related: The 5 Cryptocurrencies To Follow This Week: BTC, DOT, LUNA, AVAX, EGLD

With an update on the US Consumer Price Index (CPI) expected this week, many anticipate that the “gap” between projections and reality will continue to widen.

The Federal Reserve, after recently announcing that it will reduce its asset purchases, may even be forced to change course due to the current environment, an analyst told Bloomberg.

We believe there is an upside risk in the CPI figures and, as a result, there is a risk that the Fed may actually accelerate the pace of asset purchases,”Said Mahjabeen Zaman, Citigroup’s senior investment specialist.

As Cointelegraph previously mentioned, the CPI in itself is an inadequate measure of inflation, as it excludes many of the assets that are experiencing the largest increase in value and price.

This has prompted many to promote the adoption of Bitcoin to preserve purchasing power both individual savers and corporations with large cash reserves, and it was a key factor in MicroStrategy’s move to convert huge portions of their balance sheets into BTC.

I believe it is the ultimate use case for Bitcoin as a store of value and treasury asset, for families, corporations, governments, institutions or trusts,CEO Michael Saylor said in another interview last week.

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